Deddappa & Ors vs The Branch Manager, National Insurance ...

The Supreme Court held that under Section 166 of the Motor Vehicles Act, 1988, the liability of the insurer persists despite the cancellation of the insurance policy due to dishonored premium payment, as established in Oriental Insurance Co. Ltd. v. Inderjit Kaur [(1998) 1 SCC 371] and National Insurance Co. Ltd. v. Seema Malhotra [(2001) 3 SCC 151]. The Court reversed the High Court's decision, affirming the Motor Accidents Claims Tribunal's award of Rs.1,58,000/- in compensation to the appellant for the death of her daughter caused by a negligent driver, holding the insurer liable despite the policy's cancellation.