Motor Vehicles Act, 1988, Section 166 read with Sections 147 and 149

Motor Vehicles Act, 1988—Section 166 read with Sections 147 and 149—Motor Accident—Compensation—Passengers in excess of the number covered by the insurance policy were being carried in the vehicle—Whether insurance company is liable to pay compensation to passengers carried in excess of the permitted number?—Held, no—The liability of the insurer is confined to the number of persons covered by the insurance policy and not beyond the same—However, having regard to the provisions of Section 149(1), the liability to make payment in respect of persons not covered by the insurance policy continues as it would be entitled to recover the same if it could prove that one of the conditions of the policy had been breached by the owner of the vehicle—Further held, so far as question of apportionment of the amounts to be paid is concerned, since there can be no pick and choose method to identify the persons in respect of whom compensation would be payable by the insurance company, ends of justice would be met if procedure adopted in Baljit Kaur’s case [(2004) 2 SCC 1] is applied.


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