G.M., United India Insurance Co.Ltd vs M. Laxmi & Ors

The Supreme Court held that under Section 166 of the Motor Vehicles Act, 1988, the insurer is not liable to compensate for injuries sustained by a gratuitous passenger, such as a pillion rider, under an Act policy. The Court distinguished between Act policies and Comprehensive policies, emphasizing that the Circular of the Tariff Advisory Committee pertains only to Comprehensive policies. The High Court's judgment allowing compensation was set aside, reaffirming that the insurer had no liability in this case.