Legal Liability To Paid Driver Cover

The liability cover refers to the vehicle owner’s liability as an employer to pay compensation under the Employees Compensation Act, 1923 in case of an accident to a vehicle resulting in the death or disability of the paid driver.

This cover is required if drivers are hired or employed to drive your car. There is a legal liability for the owner of a car to protect such paid drivers during their working hours under the workmen compensation act/fatal accidents act/common law.

This is not an automatic cover in comprehensive car insurance policies. It is an optional cover for which, you have to pay an additional amount if you are likely to use paid drivers. Even if you prefer self-driving, you will not know when you will be intent to hire a driver. So, it always makes sense to add this cover to your car insurance policy.

The driver and the car owner are both liable for any damages in an accident. If you are a paid driver and your car is insured, then your insurer will cover the costs of all damages to the other party’s property or injuries.

Why it is Important?

Legal liability is the responsibility of a person or organization to compensate someone else who has been wronged. The person who has been wronged is usually entitled to compensation in the form of money or service.

A driver is considered insured whenever he/she pays for insurance coverage, but there are cases when the driver doesn't pay for car insurance and hence becomes uninsured. In such cases, the driver can be held liable for any damages that may arise from an accident caused by him/her.

• A legal liability cover for a paid driver implies that if you have hired a driver to drive your car and he meets with an accident while driving it, then the insurance company will provide compensation for his injury/loss of life.
• Generally, legal liability cover is offered as a rider along with your car insurance policy. You have to pay an additional premium amount mostly around Rs. 50 to avail of this coverage along with your third-party/comprehensive car insurance policy.
• When you have the legal liability cover, if your hired driver meets with an unexpected accident driving your vehicle, your insurance company pays the compensation for treating the injuries sustained by the hired driver.
• While this cover is an add-on to regular car insurance plans, it is to be noted that if a driver hired by you is injured on the job, you have to provide the driver with due compensation, as per the Workmen’s Compensation Act of 1923 and the Fatal Accidents Act of 1855.
• So, if you often use a driver to ferry you around, then it makes sense to pay extra for the legal liability cover while getting your car insurance plan.

Case scenario:

Vijay didn’t know how to drive, so he used to hire a paid driver whenever he wanted to go out or take his family. All was going well for Mr. Vijay until his car met up with an accident. The car suffered some damage, but the driver had injured and was bleeding continuously. He was taken to a nearby hospital for treatment.

Once, everything was sorted out and the driver got discharged after incurring an expenditure of around Rs 1 lakh, Mr. Vijay approached the broker through whom he had bought the car insurance policy.

The car was properly examined by the insurance guy and upon verification, a suitable amount was registered as to be paid to Mr. Vijay for reimbursement. Mr. Vijay was shocked to know that while buying the policy for car insurance, he had forgotten to buy additional coverage for the paid-up driver. So as per the rules of car insurance, you can buy coverage for the driver too If you have a paid driver. It is always recommended that you take additional personal accident cover for him. The policyholder must be aware that he may be legally liable to pay for the driver in case of an accident.

This came as a complete surprise to Mr. Vijay for he had not thought about it. If he had paid some additional amount as a premium, the driver who was driving his vehicle at the time of the accident would have been duly compensated by the Insurance Company. In the happiness of owning a car, Mr. Vijay had forgotten the fundamental rule of coverage for the driver and the co-passengers. So, it is mandatory to buy coverage for the driver as well as co-passengers to avoid the financial liabilities in case any of them suffers injuries during the accident. So, in this scenario, the entire bill footed by the hospital had to be duly paid by Mr. Vijay and it became a major financial burden for him for he had to shell out 1 lakh rupees that were incurred on the treatment of the driver in the hospital due to injuries suffered in the accident.

How does Legal Liability to Paid Driver Cover Works?

Insured against his legal liability under the Workmen's Compensation Act, 1923 and subsequent amendments of that Act before the date of this endorsement, the Fatal Accidents Act, 1855, or at Common Law in respect of personal injury to any paid driver whilst engaged in the service of the Insured in such occupation in connection with the vehicle insured and will, in addition, be responsible for all costs and expenses incurred with its written consent.

The premium to be calculated and paid while taking insurance of the vehicle concurred at the rate of Rs. 25/- to RS.50/- per driver.

Provided always that:

• The Insured shall take reasonable precautions to prevent accidents and shall comply with all statutory obligations.
• The Insured shall keep a record of the name of each driver or person employed in loading and/or unloading and the amount of wages salary and other earnings paid to such employees and shall at all times allow the insurer to inspect such record.
• In the event of the Policy being canceled at the request of the Insured no refund of the premium paid in respect of this Endorsement will be allowed. Subject otherwise to the terms exceptions conditions and limitations of this Policy except so far as necessary to meet the requirements of the Motor Vehicles Act, 1988.

What Legal Liability to Paid Driver Covers?

A paid driver who meets with an accident in the course of his employment may bring an action for compensation in any of the below mentioned:-

• If the accident involves another vehicle
• A claim under Sec 140, 163A, or 166 (with or without Sec 140) against the driver, owner, and insurer of that other vehicle.
• Under the Employees Compensation Act against the owner and insurer of the vehicle, he was driving.
• If the accident does not involve any other identified vehicle or involves an unidentified vehicle.
• Under the Employees Compensation Act against the owner and insurer of the vehicle, he was driving.

Top Companies that Offer Legal Liability to Paid Driver in Car Insurance Policy:

How to Buy/Renew a Personal Belongings Cover Add-on in Car Insurance?

Car insurance can be purchased online from the PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, a 24*7 customer assistance team your motive is to give our customers the right quotes with compare car insurance rates online.

You have the option to purchase this cover via the online mode or the offline mode while buying or renewing your car insurance policy. You can buy a Cover by following the below mentioned steps.

• Go to compare car insurance quotes online atPolicyBachat.com
• Fill in the required details and select your Car Model & Variant, RTO Location, Registration date, and Email address.
• Click on the “START SAVING MONEY”.
• Choose a Comprehensive Insurance plan.
• Premiums with different insurance companies are displayed with low premiums.
• Select the Legal Liability to Paid Driver from the available Add-ons
• After that fill in the ‘vehicle owner details and personal details.
• Purchase the best Car Insurance Policy using online payment
• If any queries are raised call: 1800–123–4003.

Conclusion: While accidents and damages happen in unfortunate events, it is best to be prepared for such times. So why wait any longer? Get your car insurance with legal liability to paid driver cover today.