The death of former chairman of the Tata Group, Cyrus Mistry has drawn country-wide debate on the eligibility of the industry claims in accident cases. The companies say that the purpose of investing in insurance is to hedge against risk, caused by human error or otherwise.

Human error or rules violation is not likely to impact the legal validity of the insurance policy. Along with this, the accidental death claims will retain their eligibility onward, but in exceptional, the claimed amount could be lowered.

Insurance documents do not list acts that describe not wearing a seat belt will impact compensation payment if it caused occupants’ death instead drivers.

Most policies mention that any accidental loss or damage caused while the insured person drives or any other person drives the vehicle with the knowledge of the insured person for being in the influence of an intoxicated substance such as liquor or drugs, limits the compensation amount and may vary depending on the policy

Cyrus Mistry, along with his friend succumbed to death in a tragic road accident on Sunday, during their car journey from Ahmedabad to Mumbai, along with two more people caused severely injured.

The majority of accidents are caused by human errors, if such errors would not happen, then the chances of accidents are significantly lesser. In one buys a policy, then it is for actually covering that negligence.