National Insurance Company Ltd vs Behari Lal & Ors

The Supreme Court analyzed the scope of the proviso to sub-section (2) of Section 147 of the Motor Vehicles Act, 1988, determining that the liability of the Insurance Company is not limited to Rs.15,000 per passenger as per the Old Act, but is co-extensive with that of the owner and driver under the New Act. The Court held that the High Court's modification of the Tribunal's award was correct, affirming that the existing policy remained valid and did not restrict the insurer's liability. Consequently, the appeal by the Insurance Company was dismissed.