Archive · 7 Jan 2026
Karnataka High Court Rules Insurer Not Liable for Accident Compensation
A school bus driver named Badruddin was driving children to school when the bus fell into a river, causing his death and the deaths of several children.
The insurance company, Bajaj Allianz, was not held responsible for paying compensation because the driver's license had expired two months before the accident.
The court decided that the school, which employed the driver, was responsible for ensuring the driver had a valid license.
Since they did not, they had to pay the compensation of Rs 5.38 lakh to the driver's family.
A school bus accident in 2008 in Mangaluru, Karnataka, resulted in the deaths of the driver, Badruddin, and several schoolchildren.
The insurance company, Bajaj Allianz, was not held liable for compensation because the driver's license had expired two months before the accident.
The Commissioner for Employees Compensation ruled in 2015 that the school management was solely responsible for paying Rs 5.38 lakh in compensation.
The Karnataka High Court upheld this decision in 2017, stating that the employer is responsible for ensuring the driver has a valid license.
The court referred to a Supreme Court case to reinforce the principle that the employer bears the responsibility to ensure the driver's license is valid.
- Who
- Badruddin (driver) and several schoolchildren
- What
- A school bus accident resulting in fatalities
- When
- 2008 (during the rainy season)
- Where
- Phalguni River, Mangaluru, Karnataka
- Why
- The driver's expired license invalidated the insurance policy, making the employer solely liable for compensation.
- Driver
- Badruddin
- Vehicle
- School bus
- Location
- Mangaluru, Karnataka
- Accident Date
- 2008 (during rainy season)
- Compensation Amount
- Rs 5.38 lakh (with 12% interest from accident date)
- Insurance Company
- Bajaj Allianz General Insurance
- Employer
- Balma English Medium School management
- Court Decision Date
- December 19, 2017