BHAGYALAKSHMI vs UNITED INSURANCE CO.LTD.

The Supreme Court addressed the liability of an insurance company under the Motor Vehicles Act, 1988, specifically regarding the coverage for passengers 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 the insurance policy must cover the risk of passengers, thereby overturning the High Court's decision that denied coverage. The Court ruled in favor of the appellants, affirming their right to compensation for the death of the passenger.