Oriental Insurance Co. Ltd vs Smt. Raj Kumari & Ors

The Supreme Court upheld the High Court's ruling that the insurer's liability is limited to Rs.50,000 under Section 95(2) of the Motor Vehicles Act, but clarified that the insurer must pay the entire awarded compensation of Rs.1,25,200 to the claimants and can recover the excess from the owner and driver. The Court referenced the Constitution Bench decision in New India Assurance Co. Ltd. v. C.M. Jaya, affirming that the insurer's liability does not extend beyond the policy limit unless a higher premium was paid for greater coverage. The appeal was dismissed, maintaining the High Court's order.