The Court of Appeals in Civil, Commercial and Mining Law of General Roca (Río Negro) ruled on a damages case arising from a traffic accident, upholding the insurer's exclusion of coverage. The court confirmed that the company is not liable to compensate the victims because the damaged vehicle was being used for a purpose other than the one declared when taking out the policy. Key points of the ruling: The Justice argued that the use of the vehicle as a taxi (transport of passengers) represented an aggravation of the risk compared to the one declared as 'private use'. The judge pointed out: Aggravated risk: 'It is a truism that the risk of insuring a vehicle intended for passenger transport is much more onerous than that of a vehicle for simple private use'. Abstract analysis: The fact that the improper use of the vehicle did not directly influence the cause of the accident does not prevent the exclusion, as the analysis of the assumed risk is carried out 'abstractly, not concretely'. Therefore, the Court dismissed the victims' appeal and confirmed the insurer's 'lack of passive legitimacy'. Increase in compensation to the driver Despite exempting the insurer, the court did grant other aggravations claimed by the defendant driver (Sandoval) regarding the quantification of damages, significantly increasing the total amount of the sentence: Survivor's Incapacity: Compensation was increased to the sum of $93,329,033.91. The Court ordered the updating of the plaintiff's (general farmhand's) base income to the values of the date of the judgment. Vehicle damage: The item for damages to the motorcycle was admitted for $1,305,500 and for loss of use for $225,000.
Court Upholds Insurer's Coverage Exclusion for Taxi Accident
An Argentine court upheld an insurer's denial of compensation to taxi accident victims, ruling the vehicle's use violated the policy. The court, however, significantly increased the driver's own compensation award.