DEDDAPPA vs BRANCH MANAGER, NATIONAL INS. CO. LTD.

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 dishonoured premium payment, as established in Oriental Insurance Co. Ltd. v. Inderjit Kaur and National Insurance Co. Ltd. v. Seema Malhotra. The Court reversed the Karnataka 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. The insurer was held liable for the compensation despite the policy's cancellation prior to the accident.