PADMA SRINIVASAN vs PREMIER INSURANCE CO. LTD.

The Supreme Court held that under Section 95(2)(a) of the Motor Vehicles Act, 1939, the insurer's liability for third-party risks must be determined based on the date of the accident, not the date the insurance policy was issued. The Court clarified that the amended liability limit of Rs. 50,000 applies to accidents occurring after March 2, 1970, even if the policy was issued before that date. The appeal was allowed, affirming that the insurer is liable for the higher amount as per the law in force at the time of the accident.