How Can I Ensure My Driver Pays for Damages After Drinking and Driving Incident?

My driver had an accident with our car. Since he was not able to pay the garage mechanic, we mutually agreed that he would pay from his salary every month. However, he started drinking and driving, so we want him to leave his job.

The concern is, is there any format of agreement or affidavit that I can have him sign to ensure he pays me the pending money?

These are all informal arrangements and subsist only until you are paying him. Why didn't you claim from insurance? The drunken driver can give you an IOU or promissory note, but how will you enforce it? How much was the loss caused by your driver? Was he at fault? Probably, he started drinking after he was paying EMI to you from his salary.

Illegal Deduction of Repair Costs

The deduction of repair costs from the salary of a driver is an illegal deduction as per the Payment of Wages Act. So, if you are paying him as an employee of the company, then you are probably already in trouble. If he is a personal driver, then in any case, there does not appear to be a possibility of recovering.

In any case, asking a driver to pay for an accident is not a common practice unless there is a specific reason, such as driving under the influence of alcohol. In the case of a normal accident, that is why we have insurance coverage. Frankly, if you can't afford to pay for accident damage, you should not own a car.