Insurance company can be made liable only in respect of passengers for whom insurance has been taken or can be taken

Last updated: 25 May 2022
Quick Summary
The Supreme Court has ruled that an insurance company's liability is limited to the number of passengers for whom insurance cover was taken or could have been taken under the Motor Vehicles Act. This means that in cases of vehicle overloading, the insurer is not liable for passengers exceeding this limit. The court found no basis to hold the State liable for failing to check overloading, stating it's impractical for authorities to constantly monitor every vehicle.

Court :
Supreme Court of India

Brief :
Insurance company can be made liable only in respect of the number of passengers for whom insurance can be taken under the Motor Vehicles Act and for whom insurance has been taken as a fact and not in respect of the other passengers involved in the accident in a case of overloading

Citation :
Civil Appeal Nos. 2422-2459 of 2001

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