NATIONAL INSURANCE CO.LTD. vs PREMBAI PATEL

The Supreme Court upheld the High Court's decision that the insurance company is liable to pay compensation under Section 166 of the Motor Vehicles Act, 1988, for the death of Sunder Singh due to an accident caused by the truck's faulty condition, specifically the breaking of the arm bolt. The Court clarified that the insurance company's liability is not limited to the provisions of the Workmen’s Compensation Act, 1923, as the claimants were entitled to full compensation awarded by the High Court. The Court affirmed the compensation amount of Rs.2,10,000/- along with interest at 12% per annum from the date of filing the claim petition.