RANI GUPTA vs M/S UNITED INDIA INSURANCE CO.LTD..

The Supreme Court addressed the issue of whether a gratuitous passenger in a private vehicle is covered under the statutory insurance policy as per Section 147 of the Motor Vehicles Act, 1988. The Court held that the deceased, being a passenger, qualifies as a 'third party' under the insurance policy, thus entitling the claimant to compensation. The judgment of the Delhi High Court was upheld, affirming the compensation amount of Rs. 17,40,000 awarded by the Motor Vehicles Accidents Claims Tribunal.