ORIENTAL INSURANCE CO. LTD. vs RAJ KUMARI .

The Supreme Court upheld the Punjab and Haryana High Court's decision that, despite the insurer's liability being limited to Rs.50,000 under Section 95(2) of the Motor Vehicles Act, the insurer must pay the entire awarded compensation of Rs.1,25,200 to the claimants and recover the excess from the vehicle owner and driver. The Court referenced the precedent set in New India Assurance Co. Ltd. v. C.M. Jaya, affirming that the insurer's liability is confined to the policy limit but must fulfill the compensation obligation first. The appeal by the insurer was dismissed, affirming the High Court's order.