SHIVAWWA AND ANR. vs THE BRANCH MANAGER NATIONAL INDIA INSURANCE CO. LTD. AND ANR.

The Supreme Court held that under Section 166 of the Motor Vehicles Act, 1988, the liability of the insurance company is contingent upon the deceased being a passenger in the vehicle at the time of the accident. The Court found that the High Court erred in concluding that the deceased was not traveling with his goods, thereby absolving the insurance company of liability. The appeal was allowed, reinstating the Tribunal's award of Rs. 3,20,000/- with interest, emphasizing the need for a comprehensive evaluation of evidence in compensation claims.