insurance company absolved from paying damages

A Car insured as package policy in the name of partnership firm consisting of 4 partners wherein one of the partner travelling in the car died. Insurance company has taken a defence that he cannot be paid compensation on the ground that he is joint owner. The tribunal has held that the partnership firm is liable and has absolved the insurance company of its liability and the matter is pending in appeal before karnataka high court. Please advice whether liability can be fixed on insurance company?