The Gauhati High Court has ruled that a person borrowing and driving a vehicle cannot claim no-fault compensation against its owner and insurer for a self-caused accident.
The claimant lost control of a borrowed motorcycle without another vehicle being involved. A tribunal found him responsible but converted his negligence-based claim into a statutory no-fault claim and awarded compensation.
The High Court reversed that award, holding that a permissive borrower effectively occupies the owner’s legal position and cannot maintain a claim against himself through the owner’s policy.
The court nevertheless preserved any entitlement available under personal-accident cover. The judgment distinguishes third-party liability insurance from contractual protection for an owner or authorised rider.