The New Indian Insurance Company vs Darshana Devi & Ors

The Supreme Court held that under Section 147 of the Motor Vehicles Act, 1988, a passenger in a vehicle is considered a third party, thus entitling the claimants to compensation despite the deceased being on the mudguard of the tractor. The Court affirmed the Tribunal's finding that the insurance company remains liable for third-party risks even if the owners breached the insurance contract, as per Section 149(2) of the Act. The appeal by the insurance company was dismissed, upholding the compensation awarded by the Tribunal.