Company Car Accident: What Are Your Responsibilities If an Employee Crashes?

If a company purchases a vehicle and registers it in the company's name, then gives it to an employee for their use, what is the company's responsibility if the employee is involved in an accident?

Hi, The owner of the vehicle, regardless of who was driving it at the time of the accident, is liable to compensate the victim. The liability would shift to the insurance company if there was third-party insurance.

If the vehicle has valid insurance and a valid driver's license, the insurance company will take care of the liability as per the policy or Act.

Determining Employee's Purpose of Driving

Also, it is important to determine whether the employee was on official work while driving or was driving for personal reasons.

Hi, Thanks for your reply. Is there any statutory compliance for this? Please advise.

Hi, not sure what you are referring to regarding statutory compliance.

Employer's Responsibility for Office Vehicles

It is the responsibility of the employer to ensure that when an office vehicle is provided to an employee, he/she holds a valid driving license (such as LMV and MCWG). Also, if the vehicle is given to the office driver, then the employer should have a copy of the driver's license (or even the original, as some employers tend to collect it).