New India Assurance Company Ltd vs Ramila & Ors

The Supreme Court upheld the Madhya Pradesh High Court's decision which dismissed the Insurance Company's appeal against the compensation awarded to the claimants under Section 95 of the Motor Vehicles Act, 1988. The Court clarified that the limit of Rs.50,000/- applies to property damage, not to death or bodily injury, which is covered under Section II-1(i) of the insurance policy. The Court also noted that the Insurance Company failed to raise the limitation of liability in its written statement, thus affirming the High Court's enhancement of compensation to Rs.5,57,000/- for the LRs of Vimal Kumar and Rs.1,67,600/- for Rameshchand.