NATIONAL INSURANCE CO. LTD vs KUSUM RAI .

The Supreme Court held that under Sections 163A and 166 of the Motor Vehicles Act, 1988, the insurance company cannot evade its statutory liability to compensate third-party victims due to a breach of the insurance contract by the vehicle owner. The Court reaffirmed the principle established in New India Assurance Co., Shimla v. Kamla, stating that while the insurer can seek recovery from the owner for any breach, it remains liable to the third party. The appeal was dismissed, upholding the High Court's decision that the insurer's liability is not negated by the owner's violation of policy terms.