#Comprehensive Policy

The Indore Bench of the Madhya Pradesh High Court affirmed that an insurer's liability under a comprehensive motor insurance policy is limited to Rs 1 lakh per passenger, even when higher compensation is awarded. It raised the total compensation to Rs 37.62 lakh, emphasizing that policy terms prevail over IRDA circulars. This ruling impacts insurers and claimants in motor accident claims across the state.

Bombay High Court rules that insurers under comprehensive motor policies cannot deny liability for excess passengers unless they prove the occupants were engaged in paid transport. The court enhanced compensation with 40% future prospects, Rs. 40,000 consortium per dependent, and 9% interest from the filing date, reinforcing strict evidentiary burden on insurers.

Bombay High Court holds that comprehensive motor insurance policies must cover pillion riders for death or injury, irrespective of familial relationship to the owner-driver.