National Insurance Co. Ltd vs Kaushalaya Devi & Ors

The Supreme Court addressed the liability of the insurance company under Section 166 of the Motor Vehicles Act, 1988, in a case where the deceased was an unauthorized passenger in a goods vehicle. The Court upheld the Tribunal's finding that the driver was negligent and that the insurance company could not avoid liability despite the driver's lack of a valid driving license. The Court affirmed the High Court's decision to release the compensation amount to the claimant while allowing the insurance company to recover the amount from the vehicle owner, establishing that the insurance coverage extends even to unauthorized passengers under certain circumstances.