Car accident

Nidhi (Querist) 06 December 2013 This query is : Resolved
Dear All,

I need experts help. the matter is that my company is hiring driver through vendor, vendor has put clause that in case of accident even though the drivers fault, company will have to bear cost of repair. car is owned by the company.
Thanks & regards,

Nidhi

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Arvind Singh Chauhan (Expert) 06 December 2013
Any clause which is against law has no value in the eyes of law. In my opinion this clause is vague and has no legal value.

Legally vendor can't put liability on company. Company can not be liable unless unauthorized or illegal use of vehicle against the rules framed under MV Act(i.e passenger vehicle is being use for carrying goods ) .

In case of accident, owner can claim expenses from insurance company.

Rajendra K Goyal (Expert) 06 December 2013
Whether the vehicle belongs to vender or the Company. The damages is to be compensated by the Insurance company. If damages caused due to negligence of driver, the vender is liable.

Raj Kumar Makkad (Expert) 09 December 2013
What is the compulsion with the company to accept such illegal and void term?

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