NATIONAL INSURANCE CO. LTD., NEW DELHI vs JUGAL KISHORE & OTHERS

The Supreme Court held that under Section 95(2) of the Motor Vehicles Act, 1939, the liability of the insurer for third-party claims is limited to Rs.20,000, and comprehensive insurance does not increase this statutory limit unless a specific agreement is made. The Court emphasized that the insurer must produce the insurance policy to substantiate any claims regarding liability limits. The appeal was allowed, confirming that the insurer's liability cannot exceed the statutory amount specified in the Act.