At present, there is no law which states that not wearing seatbelts would lead to denial of insurance claims in case of death or injury. But now, with increasing demand for wearing of seatbelts to be made mandatory for rear seat passengers, claim rules could be in for a change as well
The sudden and unexpected demise of former Tata Sons chairman Cyrus Mistry, and KPMG director, Jehangir Pandole, in a high-speed car crash on September 4, 2022, has brought to light the significance of wearing of seatbelts for rear seat passengers of a car.
Not putting on the seatbelt may or may not put the passenger’s life at risk, but it could now lead to changes in compensation clauses, as per the motor accident claims tribunal, in case of an accident. For example, lower claims may be paid, on the grounds of ‘violation’ of rules. Insurance companies could bring in the change if wearing of seatbelts become mandatory for rear seat passengers, too, said experts Outlook Money spoke to.
Impact On Insurance Claim
According to legal experts, at present, there’s no specific law that states that a person who does not wear a seatbelt, and gets killed or injured in a car crash, would not get the insurance claim. Mostly, in such cases, the court or the tribunal would investigate the cause of the accident and violation of the ‘seatbelt’, rule which could lead to a lower compensation from the insurance company.
According to the Insurance Regulatory and Development Authority of India (IRDAI), the minimum cover mandated under the Motor Vehicles Act, 1988 are insured under a comprehensive policy. Hence, it does not cover‘gratuitous passengers’ travelling in private vehicles. For such cases, the court will look into all aspects before handing out compensation, including wearing a seatbelt in car, among others.
Says Tapan Singhel, managing director (MD) and chief executive officer (CEO), Bajaj Allianz General Insurance: “If the insured has a comprehensive motor insurance policy, the claim will be paid as long as it is admissible and is valid as per the policy. It is important to know that the policy also covers the risk to the occupants in the car. I would strongly urge everyone to fasten their seat belts while in the car, since accidents are unforeseen in nature and there is no way of knowing when an unfortunate event might occur.” Atul Deshpande, head – claims and special projects, SBI General Insurance, however, says that things could now change.
“Currently, wearing seatbelts is mandatory in case of a driver and co-driver, however not for passengers in the rear seat. Hence, for any insurance related claim pertaining to accidental damage of rear seat passengers, may not be affected, as of now. However, with the recent incident, the significance of seatbelts even in the rear seats has been underlined. To reiterate and further drive this key message, wearing seatbelt maybe mandatory soon, which will have a ripple effect on insurers as well, in the near future. It will not just ensure awareness for wearing seatbelts, but will also push for adherence to customer safety,” Deshpande says.
Ashwini Dubey, head, motor insurance renewals, Policybazaar.com, says that at present there is no law which states whether a person (either a driver or a co-passenger) who wasn’t wearing a seatbelt and happened to die or get injured/disabled in a road accident would not get the insurance compensation.
“Rather it is advisable for everyone to ensure the safety of the co-passengers seated in a car, the vehicle owner must buy an add-on passenger cover under their comprehensive car insurance policy. Opting for additional protection would increase your premium payments by an insignificant margin, but this rider ensures the complete safety of everyone inside the vehicle,” he adds.
Dubey further adds that under the motor insurance policy, it is mandatory for the vehicle owner (either two-wheeler or four wheeler) to have a personal accident cover.
“A personal accident cover under the motor insurance policy will pay for the compensation in case of bodily injuries, death, or any permanent disability resulting due to the accident. In case of accidental death or total disability, the insurance company will pay the entire sum insured to the nominee. To ensure coverage for the passenger seated in your car, you can buy a passenger add-on cover by paying an extra premium. This cover can be availed for up to three co-passengers seated in the car,” he adds.
Road Accidents In India
According to the Road Accidents in India, 2020 report by the Ministry of Road Transport and Highways, around 15,146 deaths occurred in the past year due to ‘not wearing of seatbelts’. Of these, 7,810 deaths were of drivers, while the rest 7,336 involved passengers. The total number of deaths of people who were not wearing seatbelts – including both drivers and passengers comprised as much as 11.5 per cent of the total 131,714 deaths in road accidents in the country that year, statistics revealed.
After the accident of Mistry and Pandole, Nitin Gadkari, Minister of Road Transport and Highways, had said that he would make wearing seatbelts mandatory for all passengers, including the people in the rear seats. He also said that there would be a seatbelt beep system in place in case a passenger is not wearing his/her seatbelt.