MOTOR OWNERS INSURANCE CO. LTD. vs JADAVJI KESHAVJI MODI & ORS.

The Supreme Court interpreted Section 95(2) of the Motor Vehicles Act, 1939, which mandates insurance coverage for liabilities arising from vehicle use. The Court held that the insurer's liability is capped at Rs. 20,000 for any one accident, as amended by the Motor Vehicles (Amendment) Act, 1956. The Court affirmed the High Court's award of compensation to the heirs of the deceased and the injured party, clarifying that the insurer cannot be liable for amounts exceeding this limit, thus establishing the principle of statutory liability limits in motor vehicle insurance.