In Brief
A motor vehicle driver died in a road accident on 1 September 2003. The vehicle was insured with Oriental Insurance Company in the name of the registered owner. The widow's father claimed compensation from the insurance company and the employer. The insurance company argued that since the vehicle had allegedly been transferred to another person, it was no longer liable. The Workmen Compensation Commissioner awarded ₹4,27,148 with 12% interest. The High Court remanded the case. The Supreme Court held that an insurer's liability to third parties continues regardless of vehicle transfer without notice to the insurer. Section 157 of the Motor Vehicles Act deems the insurance transferred with all rights and liabilities. The Court restored the Commissioner's award.
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