New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    In which of the following situations is the owner of a

    motor vehicle vicariously liable under the Motor Vehicles Act, 1988?
    A When the vehicle is driven by a stranger without permission. Correct Answer Incorrect Answer
    B When the vehicle is driven by a friend without the owner's knowledge. Correct Answer Incorrect Answer
    C When the vehicle is driven by an employee during the course of employment. Correct Answer Incorrect Answer
    D When the vehicle is stolen and used in a crime. Correct Answer Incorrect Answer
    E When the vehicle is sold but registration is not yet transferred. Correct Answer Incorrect Answer

    Solution

    Under the Motor Vehicles Act and established legal principles of vicarious liability, an owner is liable for acts of the driver if: • The vehicle was being used with the owner's consent, and • The driver was acting within the scope of employment or agency. When an employee is driving the vehicle during the course of employment, the owner (employer) is held vicariously liable for any injury, damage, or accident caused. This is supported by judicial precedents and falls within the framework of compensation under Section 165 read with Section 2(30) and Section 166 of the Act. Options (a), (b), and (d) involve unauthorized or criminal use, where the owner may not be held liable. Option (e) relates to registration issues, which may lead to shared or disputed liability but not straightforward vicarious liability.

    Practice Next