ORIENTAL INSURANCE CO. LTD. vs CHERUVAKKARA NAFEESSU .

The Supreme Court addressed 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 insurance policy. However, the Court held that the avoidance clause in the policy does not negate the insurer's obligation to indemnify the insured for amounts exceeding this limit, as mandated by Section 96 of the Act. The appeal was dismissed, affirming the Claims Tribunal's award of Rs.1,94,150 against the insurance company.