United India Insurance Co. Ltd., Shimla vs Tilak Singh And Ors

The Supreme Court addressed whether a statutory insurance policy under the Motor Vehicles Act, 1988 covers the risk of death or injury to a gratuitous passenger in a private vehicle. The Court held that the absence of an endorsement for pillion passengers (IMT 70) in the insurance policy excludes liability for such passengers. The Court affirmed the High Court's ruling that the insurance company is jointly and severally liable for compensation, despite the policy's limitations, due to the lack of notice regarding the transfer of the vehicle's ownership not being a valid defense against liability under Section 166 of the Motor Vehicles Act, 1988.