My car was undergoing repairs in the garage and when it was taken out for a test drive, the driver hit somebody with the car. Will my insurance company admit liability under the policy?
Naresh Sodhi, Ghaziabad
Although unfortunate, the claim of the third party can be admitted under the motor policy and the insurer will admit liability under the policy. In fact when the owner of a motor vehicle entrusts his vehicle to a repairer to carry out the repairs, by implication he allows the repairer to use the vehicle. In the contract of repairs, unless there is any condition to the contrary, the owner of the vehicle also allows any worker of the repairer, who is engaged in the work of repairs, to use the motor vehicle for the purpose of or in connection with the work of repair. During the course of repairs, if on account of the negligence of either the repairer or his employee, a third party dies or suffers any injury the insurer becomes liable to pay the compensation by virtue of section 94 and 95 of the Motor Vehicles Act, 1939.
