I was having an interesting chat with one of the corporate hr leaders yesterday.
His question was: “Why in Accidental Deaths, if the person died is found drunken driving, he is denied the insurance claim ”
He continued “the proceeds of the claim are meant for his family members. Why punish family members for the mistake done by him”
On Humanitarian grounds, this reasoning looks very justified.
But the truth is that we are all expected to insure others in many parts of life.
In this case, the person was expected to drive safely to ensure other people on the road.
This is common sense and the law – a law that considers drunken driving as an offence and penalises the driver for it.
Another aspect is the insurance contract in place that explicitly states that it will not provide coverage for accidents that were caused if the driver was in an inebriated state.
So by driving in such a condition, the person has broken the law and also breached the insurance contract.
If the insurance claim is passed for this case, it is, in a way, promoting drunken driving.
Hence the claim is denied.
I have a question for you now?
Let’s say, a motorist has not kept the helmet and the car driver has not kept the seat belt and dies in an accident, Can an Insurance Company can deny his personal accident Insurance claim?