UNITED INDIA INSURANCE CO. LTD.,SHIMLA vs TILAK SINGH .

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 (I.M.T. 70) in the insurance policy, which is necessary for covering pillion passengers, does not exempt the insurance company from liability if the vehicle was sold without notifying the insurer. The Court upheld the High Court's decision that the insurance company is jointly liable for compensation awarded under Section 166 of the Motor Vehicles Act, 1988, despite the policy's limitations.