My mate took a race driving course at the local (Malaysia) track and rolled his BMW M3 three times with the instructor as passenger. He crawled out with only minor scratches, but the latter was not so lucky and is now in a coma.

His insurance policy has the usual exclusion clause of participating in and or preparing for races, rally, hill climbs and time trials, but is silent on driving courses. I know the insurance company will try to wriggle out of it by claiming that driving on a race track or taking a race driving course constitutes some form of "racing" or preparing for racing, but there are plenty of witnesses that can testify that he is not racing with anyone else on the track nor is he being timed. Where does he stand?

The poor instructor is going to sue him for compensation, but the insurance coverage for passenger liability is only in case of negligence. Losing control of a car due to inexperience (his first trip to a race track) is quite different from negligence, more so if the instructor is sitting by his side. All students of the course were required to sign liability waiver for the school, is there some common law that provides reciprocal waiver for the student, e.g. if the student smash up the school's car or knock down some one?

It was later learned that the driving school has got no insurance cover for the poor instructor and his family is in dire financial need to cover the medical bills at a private hospital (Free or subsidised medical is only available in government hospitals). My friend is legally prevented by the terms of his insurance policy from even talking to the other side about possible monetary assistance out of his own pocket. He also has to consider the possibility that he is not covered by insurance and may have to face the claims all by himself. So he is in a moral dilema. Any suggestions?