The management of a school, has instructed the driver of its vehicle not to allow any unauthorized person to board the vehicle. Similar information, was pasted on the vehicle itself stated that no unauthorized person was permitted to travel in the vehicle. The driver allowed an unauthorized passenger to board and drove negligently causing an accident in which the unauthorized passenger was killed. Would the school management be liable?
yes school management is liable for the death of the unauthorized passenger. The un authorized passenger is 3rd party to the policy issued to the vehicle. The insurance company will be directed to pay the compensation and will be asked to recover the same from the owner of the bus.
I am afraid when there is a specific rule that prohibits the entry of stranger or outside party and as per permits given by RTO, the insurance company never provides claim and the school has to pay compensation as it has vicarious liability.