As per case facts, an appeal was filed by the Insurance Company challenging an award by the Motor Accident Claims Tribunal. The Tribunal had held the insurance company liable for ... compensation following an accident where the deceased was traveling on a tractor whose insurance policy covered only the driver, with no extra premium for other occupants. The company contended that carrying an unauthorized passenger breached the policy terms and conditions. The question arose whether the Insurance Company was liable to pay compensation for the deceased, considering the policy's seating capacity limit and the Tribunal's reliance on Rule 97 of the Madhya Pradesh Motor Vehicle Rules, 1994, which allows for transporting laborers in certain scenarios. Finally, the High Court clarified that Rule 97 of the Madhya Pradesh Motor Vehicle Rules, 1994, is not applicable for determining insurer liability under Section 147 of the Motor Vehicles Act. It ruled that liability is strictly governed by Section 147 and the policy terms. Given that no premium was paid to cover the risk of any person traveling on the tractor other than the driver, the Insurance Company was exonerated from liability, and the award against them was set aside. The claimants were directed to recover the compensation from the owner and driver of the offending vehicle.