This article will discuss the vicarious liability meaning in relation to the commission of traffic law offences in New South Wales, Australia. In NSW, there are certain rules when it comes to accidents that drivers (who are not the owner of the car he or she is driving) cause.
In the event that an employee causes an accident or injury while driving a company car, who should be responsible for paying for the damages and who shall be liable for the offence? Driving taxis, buses, or trucks for work are usually involved in situations that raise the question of who is held legally responsible or held liable.
This article will help you understand the vicarious liability meaning when scenarios like this arise.
Vicarious Liability Meaning
Generally, vicarious liability (or imputed liability) pertains to the employers liability or responsibility for crimes committed by their individual employees or subordinates. In relation to traffic law, courts can hold an employer vicariously liable or the employer’s business if their drivers or employers commit a traffic violation in NSW.
To understand the vicarious liability meaning, here’s a scenario:
A person who drives a vehicle that he or she does not own and causes an accident or injury to another. This makes the owner of that vehicle held vicariously liable. This is because such a person is the ‘agent’ of the owner.
However, there are qualifying conditions in which one may be considered as an agent:
- When the owner asks the driver to use the car for the owner’s purposes; or
- When the owner exercises control as to how the driver uses the car.
Vicarious liability apply as well to employer sponsored events where there were negligent acts or a wrongful act that caused an accident to an employee. This may include accidents in business or field trips or due to another employee’s conduct.
If you’re in this situation where the driver is not the owner of the vehicle at fault and you want to recover the cost of repairs to your vehicle, seek legal advice immediately. You should also seek legal action if your accidents was caused within the your workplace. Your lawyer will know what to do.
Vicarious Liability Meaning: Driving for Work
Let’s now move on to the more specific aspects of vicarious liability meaning. If you’re driving for work and you cause an accident to another person or vehicle, your employer may also have strict liability.
However, there’s a difference if you’re an independent contractor. Here are the rules when the vehicle at fault is driven by an independent contractor:
- An independent contractor who drives his or her own car and causes an accident is responsible for any damage caused.
- An independent contractor who causes an accident while driving a car belonging to another person who hired them may claim that the person who hired them is vicariously liable.
For employees, here are the rules:
- If you are driving your own car but you are driving for your employer’s purposes, your employer may be vicariously liable.
- Your employer is not liable when:
- There is ‘serious or wilful misconduct’ in the accident, such as drunk driving or intentionally causing harm or injury to another.
- You were using the car in a manner that your employment does not permit, such as allowing another person to drive the work car.
- You were using the car for your own purposes, such as taking the car with you on a road trip with your friends.
However, there is an exception to the meaning of vicarious liability. If the other driver in the accident was at fault and he or she is driving for work, you may claim costs for repair against their employer. You must show strong evidence that the other driver is an employee of the employer.
There is a caveat in filing claims. If during the local or supreme court hearings and the court rules that the employer is not vicariously liable for the damage, the court may order you to pay for their legal costs. That’s why it’s important to consult with a lawyer first before instituting legal actions.

Vicarious Liability Meaning: Liability of Taxis, Buses, and Trucks
The drivers of taxis, buses, and trucks are usually not the owners of such vehicles. So, who is going to be liable in case of an accident where taxi and bus drivers are at fault? The operator is vicariously liable.
The operator’s insurance company must pay for the damage. Taxi drivers must carry a copy of their insurance policy with them during their trips. If you get into an accident with them, ask to see the insurance policy and get the details so you can file a claim.
For buses, the operator’s insurance company is also liable. Thus, you must address your claim to the operator and then, they will pass it to their insurance provider. If you got into an accident with Sydney Buses, contact the Public Transport info line on 131 500 and report the details of the accident.
The meaning of vicarious liability for trucks is different from taxis and buses. When truck drivers cause accidents, it is the driver-employee and/or the driver’s employer who is liable. You must get the name of the owner and the driver of the truck so you can contact them for compensation.
Important Things You Must Know
When there’s a car accident, you must think of four things: safety, evidence, making a claim, and insurance:
- Safety. You must check if you are free from injuries and those around you are safe from the aftermath of a car accident.
- Evidence. You must gather pieces of evidence that will support your claim. This includes witness statements, photos and videos, and sketches of the scene.
- Making a claim. If your car incurred damage and the other driver is at fault, you can claim against the driver for the losses. You must have strong evidence that will point to the other driver’s fault and write him or her a letter of demand.
- Insurance. If the other driver is at fault, you may claim against the Compulsory Third Party (CTP) insurance company of the driver.

Seek the Assistance of NSW Traffic Lawyers
Our traffic lawyers at JB Solicitors are the best in what they do. To have a more comprehensive discussion about claiming damages, vicarious liability meaning, car accident protocols, and collecting evidence, seek legal advice from our lawyers.
We offer the following services:
- Assistance in filing your car accident claims;
- Drafting legal documents for filing in court;
- Making insurance claims; and
- Creating a strategic action plan to protect your rights and best interests.
Schedule a consultation today.