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Why was Hyundai ordered to pay ₹3 Lakh to a Creta owner?

Why was Hyundai ordered to pay ₹3 Lakh to a Creta owner?


Car manufacturer Hyundai has been ordered by the Supreme Court to pay ₹3 Lakh to a Creta owner for malfunctioning airbags during a road accident.

The plaintiff had been driving his Hyundai Creta 1.6 VTVT SX+ on the Delhi-Panipat highway in November 2017 when he met with an accident. He survived, albeit with significant head, chest and dental injuries– all because the car’s dual front airbags failed to deploy!

On filing a complaint with the Delhi State Consumer Redressal Commission, Hyundai was ordered to pay a compensation of ₹2 Lakh for medical expenses and loss of income, ₹50,000 for the cost of litigation and another ₹50,000 for the mental agony suffered by the car owner.

The ruling was later challenged in the Supreme Court, which also ruled in favour of the Creta owner.

Faulty airbags, fire hazards, and malfunctioning electronics are all frequent occurrences that have been plaguing the automobile industry for decades.

One way car manufacturers deal with such mishaps is through Product Liability Insurance!

This insurance provides companies with sufficient funds to adequately pay compensation to affected consumers and cover any legal or product-recall related expenses that may arise.

Product Liability coverage is often clubbed with a General Liability coverage forming a Comprehensive General Liability (CGL) Insurance policy which gives businesses all-round protection against a number of risks.

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Further Reading

What does Product Liability Insurance cover?