NEW INDIA ASSURANCE COMPANY LTD. vs VEDWATI .

The Supreme Court upheld the High Court's decision that the insurer is liable to compensate the claimants under Section 166 of the Motor Vehicles Act, 1988, despite the insurer's argument regarding policy violations. The Court clarified that the precedent set in New India Assurance Company v. Satpal Singh, which allowed compensation for passengers in goods vehicles, remains applicable. The Court emphasized that the liability of the insurer towards third parties is not altered by the nature of the vehicle's use, affirming the High Court's ruling.