RAMASHRAY SINGH vs NEW INDIA ASSURANCE CO. LTD. .

The Supreme Court examined the applicability of Section 147 of the Motor Vehicles Act, 1988, in determining the liability of an insurance company for the death of an employee (khalasi) in a vehicle accident. The Court held that the insurance policy must explicitly cover the risk to a khalasi, as the High Court's interpretation was found to be erroneous. The Court reinstated the Workmen’s Compensation Court's decision, affirming that the insurance company is liable to pay compensation as the vehicle was comprehensively insured during the accident period.