Oriental Insurance Co. Ltd vs Shri Nanjappan And Ors

The Supreme Court held that under Section 168 of the Motor Vehicles Act, 1988, the insurer is liable to satisfy the awarded compensation to the claimants and may recover the amount from the vehicle owner. The Court clarified that the previous ruling in New India Assurance Company v. Satpal Singh has been overruled by New India Assurance Co. Ltd. v. Asha Rani, establishing that the insurer's liability exists despite the owner's absence in court. The High Court's decision was set aside, affirming the insurer's obligation to compensate the claimants while retaining the right to seek recovery from the insured.