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How You Can Go Bankrupt If Your Car Hits Someone: Explanation by lawyer

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In a country like India, hundreds of accidents happen on our road daily. Number of vehicles introduced on our roads every year in increasing and that also is a problem in major metro cities. In most of the major metro cities authorities have now installed CCTV cameras to keep a track on things. Have you ever thought how things will actually affect you money wise if your vehicle were to hit someone or gets involved in an accident. Here we have a video that shares why it is necessary to have an insurance and what all would be the financial repercussions if you don’t do so.

The video has been uploaded by Amish Aggarwala on his YouTube channel. The vlogger is actually a lawyer and talks about how the Motor Vehicle Law. He starts by saying that, Motor Vehicle law follows Strict liability. What this means is that, it does not matter if you unintentionally or intentionally broke a rule. If a vehicle has caused an accident or is found to be the reason for accident, the case would be registered against the owner of the vehicle. It would not matter if the owner was actually driving the car or not.

In such a case, if a car is found in an accident or known to have caused the accident, the aggrieved person shall be compensated by the owner of the vehicle. This is one of the reason why it mandatory to have a third party insurance for your vehicle. This compensations that is paid to the victim is calculated on the basis of several factors.

Bajaj Urbanite Electric Scooter

He then gives an example where a client came up to him a few years ago. The client was running a workshop and he had a scrap scooter in his garage. One of the employees at the workshop fixed the scooter somehow and took it out on a joyride when the owner was not around. The condition of the scooter was so bad that the employee could not fix it properly and within no time he had hit it into couple of people on road. If the person who has suffered in the accident has a substantial source of income, then the owner of the vehicle will have make compensations to meet his standard of living.

This brand Rolls Royce was crashed in Puducherry. However it didn’t crash into any person or vehicle.

In this case, the owner was not using the scooter anymore and for the very same reason he had not insured the vehicle as well. It was actually not his fault that his employee took it out but, the law does not consider that. The video says that, the owner now has to pay anywhere between Rs 5 lakh to Rs 15 lakh to people who suffered in the accident. This could have been avoided if he had spent some amount to insure his vehicle yearly. The video also mentions that if you are not using a vehicle anymore, it is always a good option to sell the vehicle or scrap it, so that there is no trace of the vehicle anymore.