The Pune Porsche incident – Insurance implications
On Sunday, the 19th of May 2024, a Porsche Taycan car crashed into a motorcycle which resulted in the death of the two software engineers riding the motorcycle. According to the Police, the high-end electric car, was being driven by an inebriated seventeen-year-old boy.
Investigations revealed that the vehicle was being used without proper registration since March 2024. The car was imported in March by a Bengaluru car dealer, sent to Maharashtra on temporary registration. The owner, however, failed to complete pay the necessary registration formalities at the Pune Regional Transport Office (RTO), hence, no permanent registration.
Now the question is: Will motor insurance pay for the loss of life?
Since a vehicle cannot leave the premises of a dealer’s showroom without being insured – as is required by law – let’s assume it had a basic motor insurance policy of Third-party liability only coverage.
“An insurance policy for a new vehicle is issued based on the chassis number and engine number, and the vehicle registration can only be done if the vehicle is first insured for at least a third-party liability-only policy”.
A third-party liability motor cover is the minimum motor insurance required by law, and it will indemnify in case of damage to third parties for injury, loss of life or damage to property.
The limit of liability under a third-party only cover has NOT been defined in case of accidents that result in injury or death. The compensation to be paid out by the insurance company is decided by the court.
In this case, the insurance company under whose policy the Porsche is insured would then pay the kin of the deceased once the court has decided on the amount of compensation.
BUT,
Drunken driving is a criminal offense. And so is driving being under the age of 18. Thus, strictly speaking, the insurance company is not legally bound to meet third-party claims. There have, however, been cases where the Court held the insurance company liable to ensure compensation for the victims.
What if the Porsche is uninsured? In that case, the owner of the vehicle would have to compensate the victims’ families out of his own pocket as directed by the court.
Regardless, driving without a valid licence and drunk driving are serious offenses. It is not just about getting a claim paid under an insurance policy. It is about doing what is right. It is about many ruined and wasted lives.
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