Home / Latest News / Centre Govt. to amend Law: Insurance Companies will not pay Compensation to Victims of Road Accidents by Drunk Drivers

Centre Govt. to amend Law: Insurance Companies will not pay Compensation to Victims of Road Accidents by Drunk Drivers


Once the Bill is passed the Insurance companies will not pay any compensation to victims in Accidents caused by drunk drivers.

Drunken Driving
Drunken Driving

Instead, the person driving under influence will have to cough up the entire amt. for causing death or injury, according to Motor Vehicles (Amendment) Bill, 2016 introduced in the Lok Sabha on this Friday.

However, road transport ministry hasn’t included the provision of trying drunk drivers for “culpable homicide not amounting to murder” in case of death caused by them in a crash, which is a non-bailable offence and attracts a 10 year jail term.

Though the Road Transport ministry had accepted this recommendation of a parliamentary panel, it referred this suggestion to the Ministry of Home Affairs since it requires an amendment in the Indian Penal of Code.

Experts said that while this new provision is likely to act like a deterrent, there’s a fear that the victims may end up getting lessor compensation since it’ll depend on income & paying capacity of the accused driver.

“Why is govt. putting such a provision when it is aware of the income of the professional drivers? This’ll indirectly benefit insurance companies, every single drunk driver hitting the road is a failure of the govt. authorities,” said SP Singh of IFTRT, a Delhi-based think tank on transport issues.

Introducing this bill, the Road Transport Minister Nitin Gadkari said the objective behind the proposed law is to reduce road fatalities by 50%.

Bill provides for stringent penalties, including suspension of driving licence, jail term for offences like juvenile driving, dangerous driving, speeding & double penalty on the enforcement personnel for committing any offence.

Proposed law’ll also have provision for regulating the taxi aggregators.

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14.12.2016 – India reported to have 1.46 lakh Deaths, 5 lakh injuried from Road Accidents in 2015

28.8.2016 – SC: Only Two Years in Jail for Killing a Person on Road in Accident is too low

15.4.2016 – Delhi to pay Rs.2000 to Autos for helping Road Accident Victims, Read SC Order & Guidelines for Good Samaritans

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10.1.2016- Supreme Court: Vehicle overloading at the time of Accident no reason to deny insurance claim, Read Judgment

20.8.2015- Supreme Court Committee calls for Jailing Traffic Offenders as 1,69,107 Citizens die in 4,81,805 Traffic Accidents in 2014

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22.5.2015- SC panel sets deadline to States on road safety

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