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

Save Share

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

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

6788 Views Comment Share Corporate Law Report

Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

View Judgements

Comments