M/S. National Insurance Co. Ltd vs Baljit Kaur And Ors

The Supreme Court held that Section 147 of the Motor Vehicles Act, 1988, does not cover gratuitous passengers in goods vehicles, reversing the earlier decision in New India Assurance Co. v. Satpal Singh. The Court clarified that the legislative intent was to provide for third-party risk only, and thus, the insurance company is not liable for compensation in cases involving gratuitous passengers. The appeals were allowed, and the compensation awarded by the Claims Tribunal was set aside.