Sanjeev Kr. Samrat vs National Insurance Co. Ltd. And Ors

The Supreme Court addressed the obligation of an insurer under Section 147 of the Motor Vehicles Act, 1988, to indemnify the owner of a goods vehicle when employees of the hirer travel with the owner. The Court held that the term 'employee' should be interpreted broadly, affirming that the insurer is liable to cover the legal representatives of the deceased employees who were traveling with the goods. The judgment upheld the tribunal's decision that the insurer must compensate the legal heirs of the deceased, while allowing the insurer to recover the amount from the owner of the vehicle.