National Insurance Co. Ltd vs Chella Bharathamma & Ors

The Supreme Court examined the liability of the insurer under Section 149 of the Motor Vehicles Act, 1988, in the context of an accident involving an auto rickshaw that was being operated without a valid permit. The Court held that the insurer's liability is contingent upon the insured complying with the conditions of the policy, specifically regarding the necessity of a permit for plying the vehicle for hire. The High Court's ruling that the insurer was liable to indemnify the compensation awarded was overturned, emphasizing that the absence of a permit constituted a breach of policy conditions, thus absolving the insurer from liability.