National Insurance Co. Ltd vs Kusum Rai & Ors

The Supreme Court held that under Sections 163A and 166 of the Motor Vehicles Act, 1988, an insurance company cannot evade third-party liability due to a breach of contract terms by the vehicle owner. The Court affirmed that the insurer can recover the amount paid to claimants from the owner if the driver was unlicensed or unauthorized. The appeal was dismissed, upholding the High Court's ruling that statutory liability remains despite contractual violations, allowing the insurer to seek reimbursement from the owner.