National Insurance Co. Ltd. vs Bommithi Subbhayamma And Ors.

The Supreme Court recalled its earlier order dismissing a Special Leave Petition regarding compensation for the death of a gratuitous passenger in a goods vehicle. The Court held that, following the precedent set in New India Assurance Co. Ltd. v. Asha Rani, the insurance company is not liable for compensation for the death of a gratuitous passenger, as established under Section 147 of the Motor Vehicles Act, 1988. Consequently, the impugned judgment of the High Court was deemed unsustainable, and the review petition was allowed.