Oriental Insurance Co. Ltd vs Cheruvakkara Nafeessu & Ors

The Supreme Court examined the liability of an insurance company under Section 95(1)(b) of the Motor Vehicles Act, 1939, determining that the insurer's liability is limited to Rs.50,000 as per the policy terms, despite the Claims Tribunal awarding Rs.1,94,150. The Court held that the insurer must pay the awarded amount but retains the right to seek reimbursement from the insured for any excess payment made beyond the policy limit, as stipulated in the avoidance clause. The judgment clarified the interplay between the insurance policy limits and statutory obligations under Section 96 of the Act.