UP News: The Allahabad High Court has made it clear in a motor accident compensation case that if a vehicle has been sold but the name of the previous owner is still there in the registration records of the transport department, the same registered owner will be liable to pay compensation in case of an accident.

This order has been given by Justice Sandeep Jain of Allahabad High Court. Along with this, the court also rejected the appeal of Oriental Insurance Company and upheld the order of the Employees Compensation Commissioner. Let us know what this whole matter is&8230;

After all, what is this whole matter?

Actually, on 26 February 2015, a tragic road accident took place in Moradabad, Uttar Pradesh. Car driver Dharamveer died in this accident. Employees’ Compensation Commissioner Moradabad had ordered a compensation of Rs 8,26,495 to the family of the deceased.

Insurance company had given challenge

The insurance company challenged this order in the High Court and argued that the original owner of the vehicle, Rakesh, had sold the car to Nirbhay Kumar before the accident, hence the owner-employee relationship had ended and the company was not responsible. But the court found that the registration of the vehicle was still in Rakesh’s name on the date of the accident.

Only the registered owner will give compensation

Citing previous decisions of the Supreme Court, the court said that the compensation claimant is not required to track the subsequent chain of transfer of the vehicle. The legally registered owner and his insurance company will be responsible. The company also claimed that no separate premium was given for the driver, but records revealed that a premium of Rs 50 was given for two employees under IMT 29.

The court said that the driver in a private vehicle is the main employee, hence he will be considered covered under the insurance policy. Citing a 2023 circular of the Insurance Regulatory and Development Authority of India (IRDAI), the court said that IMT 29 cover is now mandatory in private car policies to provide protection to drivers. The court said that there was no solid legal basis for the appeal. Due to this, the insurance company will have to pay compensation of Rs 17,94,718 along with interest to the claimants.