Affect on insurance claim of not wearing seatbelt
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Insurance claim: Former Tata Sons chairman Cyrus Mystery’s accident has left many questions behind. One of the topics which every news agency and transport minister Mr. Nitin Gadkari is clarifying to the people, fastening seat belts while sitting on the rear seat of a car. However, under section 194B of Indian Motor Vehicle Act if a person is not wearing a seat belt while driving shall be penalized for Rs. 1000/-. But the rule is not followed or assumed non-mandatory for people sitting on rear seats. The Indian Central Motor vehicle act section 138 (3), clearly states that if a person sitting in the rear seat is not wearing a seat belt, penalty of Rs. 1000/- can be imposed on him. Non-compliance of the rule, not only puts lives at risk but also can affect insurance claims.
As per the Ministry of Road Transport and Highways report, A total number of 3,66,138 road accidents have been reported by States and Union Territories (UTs) during the calendar year 2020.
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According to the insurance experts, no insurance claim can be denied by any insurance company for not wearing a seat belt. But the insurance company can legally appeal for reducing the amount of claim which can be financial loss to the person claiming insurance.
What experts say about the insurance claim?
Mr. Sanjiv Bajaj, Joint Chairman and MD of Bajaj Capital Ltd said that in the case of third-party insurance if the policyholder is not wearing a seat belt, the insurer of the liable party can use the fact to minimize entitled damage for injuries.
Mr. Nikhil Apte, Chief product officer-accident and health, Royal Sundaram General Insurance said that the insurance company must clearly mention in the policy that no claim will be made if the passenger is not wearing a seatbelt. Otherwise, the company cannot deny the claim and there will be no effect on the claim amount.
A CEO of a private insurance company cleared the doubt. He said, although it is a rule to wear a seatbelt and not wearing a seatbelt is an undue risk to the passenger, in case of mis-happening, the claim cannot be denied on this basis.
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What are the penalties as per motor vehicle act
The motor vehicle act clearly describes the penalties for not following traffic rule. Let’s see the main penalties
1. Not wearing seatbelt (Front and rear seats) – Rs. 1000/-
2. Not have a valid insurance policy – First instance, penalty of Rs. 2,000/- and/or 3 months imprisonment, Second instance, penalty of Rs. 4,000/- and/or 3 months imprisonment
3. Driving without license – Rs. 5000/-
4. Drink and drive – First instance, penalty of Rs. 10,000/- and/or 6 months imprisonment, Second instance, penalty of Rs. 15,000/- and/or 2 years imprisonment
5. Violation of traffic laws – Rs. 1000/-
Conclusion
As per experts clarification and judgement given in the favor of claimants, it is clear that insurance companies can not deny the claim because of not wearing seatbelt. However the company can go to court to lower the compensation amount. But for safety reasons, we all should follow the traffic rules and regulations.
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