NEW INDIA ASSURANCE CO. LTD. vs SADANAND MUKHI .

The Supreme Court held that under Section 165 of the Motor Vehicles Act, 1988, the insurer is liable to indemnify third parties, and since the deceased was the son of the vehicle owner, he was not considered a third party. The Court emphasized that the claimants must establish negligence on the part of the driver to claim compensation, which was not proven in this case. Consequently, the appeal was dismissed, affirming the lower court's decision that the claim was not maintainable.