NATIONAL INSURANCE COMPANY LIMITED vs MEGHJI NARAN SORATIYA .

The Supreme Court clarified the provisions of Section 170 and Section 149 of the Motor Vehicles Act, 1988, stating that an insurer can contest a claim only under specific circumstances. Under Section 149(2), the insurer may deny liability based on policy breaches but cannot contest the merits of the claim. However, if the Tribunal is satisfied of collusion or the failure of the owner/driver to contest, it may implead the insurer under Section 170, allowing the insurer to contest on all grounds, including merits. The Court emphasized the necessity for the Tribunal to record reasons for such impleadment.