Bhagyalakshmi And Ors vs United Insurance Co.Ltd. & Anr

The Supreme Court addressed the liability of an insurance company under Section 166 of the Motor Vehicles Act, 1988, concerning the death of a passenger in a private car. The Court held that the deletion of the second proviso to Section 95(1)(b) of the Motor Vehicles Act, 1939, implies that insurance policies must cover the risk of passengers in private vehicles. The Court overturned the High Court's ruling, affirming that the comprehensive insurance policy did cover the deceased passenger, thus entitling the claimants to compensation.