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S.B.SINHA, HARJIT SINGH BEDI
DEDDAPPA – Appellant
Versus
BRANCH MANAGER, NATIONAL INSURANCE CO. LTD – Respondent
Key Points: - The insurer is liable to pay compensation under the Motor Vehicles Act despite cancellation of the insurance policy due to dishonoured premium, based on public interest and statutory provisions (!) (!) (!) . - The policy cancellation for non-payment of premium does not automatically absolve the insurer of liability if the policy was issued and the accident occurred after notice of cancellation, with the court analyzing Sections 64-VB (Insurance Act) and 147/149 (Motor Vehicles Act) and prior precedents (!) (!) (!) (!) . - The decision relies on public policy in ensuring third-party claimants receive compensation, while recognizing contractual implications and potential recovery from the vehicle owner where appropriate (!) (!) (!) . - The case cites that a contract of insurance is governed by the Insurance Act, and no risk is to be assumed unless premium is received in advance, with considerations of cheque payments and their encashment (!) (!) (!) . - Subsection 5 of Section 147 and subsection 1 of Section 149 of the Motor Vehicles Act contemplate the insurer’s liability to satisfy awards notwithstanding cancellation in certain contexts (!) . - The court distinguishes beneficial legislation needing liberal construction from extending benefits beyond the statute’s scheme (!) (!) . - The facts establish the accident occurred after communication of cancellation, yet the court holds the insurer liable to pay and directs recovery from the vehicle owner (!) (!) .
S. B. SINHA, J.
( 1 ) LEAVE granted.
( 2 ) THIS appeal is directed against the judgment and order dated 15/6/2005 passed by a learned Single Judge of the High Court of Karnataka in M. F. A No. 5751 of 2002, whereby and whereunder an appeal preferred by the respondent herein from the judgment and order dated 12/6/2002 passed by the Motor Accidents Claims Tribunal in M. C. A. No. 113 of 2001 was allowed.
( 3 ) SHANTAMMA, daughter of the appellant herein was sleeping in her hut. A tempo bearing No. KA 37 - 2257 which was being rashly and negligently driven by Respondent No. 2 herein ran over her. She died on the spot. Household articles of the appellant also were damaged in the said accident.
( 4 ) AN application for grant of compensation was filed by the appellants herein under Section 166 of the Motor Vehicles Act, 1988 (for short "the act") in the Court of C. J. (SD) and Motor Accidents Claims Tribunal at gangavati in the district of Koppal on 12/6/2006.
( 5 ) THE said vehicle was insured with the National Insurance Company. A plea was taken therein by the Insurance Company that although the vehicle in question was insured by the owner for the period 17/10/1997 and 16/10/1998,
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