Explained: Are passengers of private-hire cars covered by insurance?

It was pointed out that the vehicle was insured as a commercial vehicle

Pachan Rabari along with his wife, two sons and daughter were travelling in a Bolero jeep owned by Arjan Rabari. Due to the driver’s negligence, the vehicle dashed into a bridge, killing Pachan who was only 39 years old. The rest of the family survived.

The vehicle was insured with Iffco Tokio. The policy provided for settlement of a claim within 45 days. Yet, when the claim was lodged, it was neither settled nor repudiated despite reminders.

Rabari’s parents and children filed a complaint before the District Forum for a direction to Iffco Tokio to pay up the insured amount of Rs100,000