Liability of Insurance Company in Utility Vehicles

Liability of Insurance Company in Utility Vehicles

In case of Shyam Lal v. Shriram General Insurance Co. Ltd [2025] GCtR 1478 (SC), insurance company argued that it should be granted recovery rights under MV Act, 1988. Vehicle in this case was a utility van manufactured by Mahindra Company. Insurance policy has mentioned that 5 passengers can be carried. The argument of insurance company that separate insurance premium is to be paid for covering passengers was rejected. It was held that grant of recovery rights to insurance company would not be justified.