In Brief
The Court examined whether a comprehensive motor insurance policy covers a gratuitous passenger injured in a car accident. The High Court had held the vehicle owner liable and absolved the insurer. The Supreme Court, relying on regulatory directives from the Tariff Advisory Committee and IRDA, held that comprehensive/package policies are statutorily required to cover occupants of private cars, including gratuitous passengers. Act Policies stand on different footing and do not extend such coverage. The Court set aside the High Court's judgment and remitted the matter to determine whether the policy at issue was a comprehensive/package policy or an Act Policy.
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