ORIENTAL INSURANCE CO. LTD. vs SURENDRA NATH LOOMBA .

The Supreme Court upheld the liability of the Oriental Insurance Company under Section 166 of the Motor Vehicles Act, 1988, affirming that the insurer was liable to compensate the claimant for injuries sustained in an accident. The Court found that the driver had a valid driving license and dismissed the insurer's claims of collusion and gratuitous passenger status. The compensation amount was reduced from Rs. 20,97,984 to Rs. 16,42,656 by the High Court, which the Supreme Court did not disturb, thereby partially allowing the insurer's appeal and dismissing the claimant's appeal.