MALLAMMA (D) BY LRS. vs NATIONAL INSURANCE CO. LTD. .

The Supreme Court held that under Section 157(1) of the Motor Vehicles Act, 1968, the benefits of an insurance policy automatically transfer to the new owner upon the transfer of a vehicle. The Court affirmed the Commissioner for Workman’s Compensation's finding that an employee-employer relationship existed between the deceased and the employer, Jeeva Ratna Setty, despite the insurance policy being in the name of Gangadhara. The appeal was allowed, reinstating the liability of the National Insurance Company to pay compensation to the claimants.