National Insurance Co.Ltd vs Ajit Kumar And Ors

The Supreme Court held that under the Motor Vehicles Act, 1988, the insurer is liable to pay compensation for death or bodily injury to a person traveling as a passenger in a goods vehicle. The Court reaffirmed the principles established in New India Assurance Co. Ltd. v. Satpal Singh, clarifying that the definitions in the new Act differ from those in the old Act, but the insurer's liability remains intact for gratuitous passengers. The appeals were decided in favor of the claimants, confirming the insurer's obligation to compensate for such injuries.