Question

Who is liable to pay compensation in case of death or permanent disablement?

• A. Owner of the vehicle
• B. State Government
• C. Driver
• D. Insurance Company

Hint:

Insurance companies are primarily liable to pay compensation under the Motor Vehicles Act, 1988.

Answer 1

The Correct Option is D

Step 1: Legal provision.
Under the Motor Vehicles Act, 1988, liability for compensation in case of death or permanent disablement due to motor accidents is on the insurance company with whom the vehicle is insured.
Step 2: Clarification.
Though the owner and driver may be directly involved, compensation liability is primarily transferred to the insurer under statutory insurance.
Step 3: Conclusion.
Hence, option (d) Insurance Company is correct.