Abhiram had engaged a driver for his car, who had negligently driven the vehicle and caused damage to a Third party. Is Abhiram responsible in the above situation? Is insurer obliged to pay to the Third party. Quote rele

As per the Common Law, the master is liable for the tortious acts of the servant, provided the servant does such act in the course of his employment. The common law also recognizes the vicarious liability of the owner of the motor car. In the law of torts, if a person negligently drives his vehicle and causes injury or death to third party, the driver whose negligence caused the damage is liable to the third party. The driver is the servant of the owner, and since he is a person of no means, the owner is liable for all his acts so far that he has done such acts in the course of his employment. In the above case based on third party. It is obligatory on the part of the insurer to pay the third party since, the insurer has no right to avoid or reject the payment of liability to a third party. The duties of the insurer towards a third party are provided in section 96(1) of Motor Vehicles Act, 1988 . The court determines the third liability and accordingly compensation is paid. The liability is unlimited. The insurance company is liable to pay the compensation amount as decided by the court (MACT) is as per third party liability clause.