JAMESKUTTY JACOB vs UNITED INDIA INSURANCE CO.&ORS

The Supreme Court held that under Section 95(2)(b)(i) of the Motor Vehicles Act, 1939, the liability of the Insurance Company is limited to Rs. 50,000/- if the vehicle is classified as one carrying passengers for hire or reward. The Court found no evidence that the vehicle in question was a taxi, thus affirming the High Court's decision to limit the Insurance Company's liability. The Court clarified that even an 'Act only' policy requires adherence to statutory limits as specified in the Act.