Alcohol presence in victim’s blood alone can’t exclude insurance liability: Kerala HC

Kochi: The Kerala High Court has ruled that the mere presence of alcohol in an accident victim’s blood cannot justify denying insurance liability under policies excluding deaths “under the influence of alcohol.” The insurer must prove that the victim was impaired or intoxicated at the time of the accident.

A Division Bench comprising Justice Sushrut Arvind Dharmadhikari and Justice Syam Kumar VM made this observation while hearing an appeal filed by the National Insurance Company. The company challenged an Insurance Ombudsman’s award directing it to pay ₹7 lakh to the wife of a government employee who died in a road accident.

The deceased, employed with the Kerala Irrigation Department, was covered under a Group Personal Accident (GPA) policy issued by the appellant company for government staff. He died when his motorcycle collided with a tourist bus. His wife, the fourth respondent, filed a claim under the policy, which the insurer rejected, citing the exclusion clause for accidents occurring under the influence of alcohol.

When the Ombudsman ruled in favour of the claimant, the insurer approached the High Court seeking to overturn the order. The Single Bench dismissed the plea, prompting a writ appeal.

The Division Bench upheld the earlier judgment, clarifying that the policy’s exclusion clause applied only when the insured was proven to be “under the influence” not merely when alcohol was detected in the bloodstream. The court noted that a chemical analysis report showing alcohol content cannot, on its own, establish intoxication or impairment.

It further held that the precedents cited by the insurer were inapplicable, as the policy's wording required proof of actual intoxication. The court emphasised that the burden lies on the insurer to prove through a process known to the law that the accident occurred due to the victim’s impaired condition.

“Evidence regarding the mere presence of alcohol would not suffice to exclude the insurer from liability. The insurer must demonstrate actual impairment of faculties caused by intoxication,” the Bench said.
(With LiveLaw inputs)