Kathmandu. A recent decision by the Nepal Insurance Authority (NIA) has dispelled the misconception that “insurance means you can be compensated”. The Authority of Nepal (CAAN) has ruled that the insurance companies are not liable to pay compensation in the case of drunken driving.
Responding to a recent complaint, the authority ruled that the insurance company is not obliged to pay compensation for the accident caused by drunk driving.
What was the event?
The accident took place when a Creta jeep (Ba 1025 Cha 3543) met with an accident at Tilottama Municipality-2 of Rupandehi district on July 23, 2012. Kamal Ghimire’s son Sachin Ghimire was driving the vehicle. The driver and other occupants were injured as the vehicle rammed into an electric pole and divider.
The insured, Kamal Ghimire, had filed a claim with Siddhartha Premier Insurance demanding compensation. However, the case went to the Insurance Authority after the insurance company refused to provide damage to the vehicle except for the third party, saying that the driver was under the influence of alcohol.
Authority’s Judgment and Legal Basis
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While studying the discharge ticket of Butwal-based Chauraha Hospital, the authority found that the driver’s health check-up was clearly under the influence of alcohol. There is a clear provision in Paragraph 5 (c) of Chapter 1 of the Private Vehicle Insurance Regulation of the Motor Insurance Directive 2073 issued by the Authority. The insurance company will not pay any loss or damage caused by the driver due to the consumption of alcohol or drugs.
On this basis, the authority has dismissed the demand of the complainant as per Section 128 of the Insurance Act, 2079. The insured will not receive any amount from the insurance company for the damage to their vehicle.
5 important lessons that insured should learn from this verdict{{{TAG_OPEN_strong_29 TAG_CLOSE_strong_29}}
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This verdict is not just a case verdict but a big lesson for all vehicle owners and drivers. It is important to understand the following aspects from this:
- Compliance with the terms of insurance Insurance Insurance is a legal contract between the insured and the insurer. If the terms and conditions of the contract (e.g. non-alcoholics, having a valid license, etc.) are violated, the insurance policy is automatically inoperative.
- Role of Hospital Report: The details revealed in the medical examination after the accident form the main evidence for the insurance claim. If there is a deficiency in the document, the claim process is complicated or dismissed.
- Difference between third party and personal damages: In this case, the insurance company may incur damage to other people or property on the road. However, the insured does not bear the cost of repairing his own vehicle. This puts a huge financial burden on the vehicle owner.
- Responsible driving: No matter what the insurance is, you should not be careless thinking that the money will come. Safety and compliance with the law are the first link to financial security.
Drunk driving is not only a legal offense, but it is also a violation of the insurance agreement.TAG_OPEN_li_36 The insurance company does not bear the liability for damage to the vehicle in the event of an accident.
