Page 372 - Motor Insurance Ebook IC 72

The Insurance Times

Q 16. A Luxury Tourist Bus 1987 Model carrying
35 passengers was involved in a serious accident
resulting in death of Driver and two passengers
and injuries to 15 passengers. Bus was insured
under package policy with unlimited liability to
passengers. Other details are as under:
a) Owner cum drive disabled Rs. 250000
b) Fatal injuries to paid driver Rs 80000
c) Fatal injuries to two passengers Rs. 135000
(each)
d) Minor injuries to 15 passengers Rs. 80000
(total
e) Repairs Rs. 50000
f) Replacement of parts Rs. 25000
g) Salvage Rs. 3000
i) Discuss the insurer's liability.
(ii) Would the position be different in case
the driver was holding LMV driving
licence and had applied for HMV licence
on 31.12.89 to the R.T.O.

Ans. (i) Presuming that the driver was holding valid driving
licence - with an endorsement to drive transport vehicle
and was also possessing badge, the insurers are liable
under the policy to pay the claim as under:

a) The risk of owner cum driver is covered under PA

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