National Insurance Co. Ltd vs Anjana Shyam & Ors

The Supreme Court held that under Section 147(1)(b)(ii) of the Motor Vehicles Act, 1988, the insurance company is liable to compensate for the claims arising from an accident involving an overloaded bus, despite the owner's breach of the insurance contract. The Court clarified that the insurance company's liability is limited to the number of passengers covered by the policy, and it cannot repudiate liability based on overloading alone. The Court upheld the High Court's decision, affirming the awards made by the Motor Accident Claims Tribunal and dismissing the insurance company's appeals.