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2005 Supreme(AP) 168
Andhra Pradesh High Court
Judges : C.Y.SOMAYAJULU
Gollavilli Primary Agricultural Coop.Credit Society Ltd. - Appellant
Versus
Oriental Insurance Co.Ltd. - Respondent
Decided On : 02-22-05
Headnote:
Andhra Pradesh Co-operative Societies Act, 1964 – Accident - Death of a member due to an accident - Petitioner a society registered under provisions of Andhra Pradesh Co-operative Societies Act in pursuance of the decision taken by Co-operative Banks Association to continue benefit of Accident Insurance Scheme for the members of the various Co-operative Primary Agricultural Societies in order to cover the risk of its members paid required premium of for each of its members to first respondent a member of petitioner society who was bitten by a dog - Treatment died due to Rabies as certified by the Civil Assistant Surgeon Government Hospital - Consequently petitioner made a claim for payment of one rupees due to death of said which was turned down by first respondent on ground that risk commenced - Petitioner is since and others were members of Group Insurance Scheme for period also even assuming that risk which resulted in his death commenced even before payment of premium for petitioner is entitled to receive payment – Held, No doubt death of victim took place on after payment of premium but date of death of the victim is of no consequence to decide case because his death was the result of an accident that took place prior to the date of commencement of the policy - From urgent circular of District Cooperative Central Bank Limited produced by petitioner it is seen that Insurance amount would be paid only death occurred due to an accident – So death of a member due to an accident is sine qua non for petitioners eligibility to receive insurance amount - It is well known that in cases of death due to an accident insurance must be available on of accident but not on date of death - If the policy is taken subsequent to occurring of the accident and if the victim dies as a result of said accident even if the policy of insurance is taken before death of victim it can be of no avail because contract of insurance was not in force by the date of accident, and since it is well known that all contracts of insurance are contracts fide contract of utmost good faith - So all the material which have a bearing on contract have to be disclosed to the insurer - Case since risk took place subsequent to expiry of the policy for and before the commencement of policy - Petitioner cannot be granted any relief is not entitled to any relief - Petition is dismissed
( 2 ) THE contention of the learned Counsel for the petitioner is since N. Satyanarayana and others were members of the Janata Group Insurance Scheme for the period 1998-99 also, even assuming that the risk which resulted in his death commenced even before payment of the premium for 1999-2000 on 28. 05. 1999 petitioner is entitled to receive payment from the first respondent since he was covered by the Janata Group Insurance Scheme for 1998-99 also.
( 3 ) THE contention of the learned Counsel for first respondent is that during 1998-99 the Janata Group Insurance Scheme policy taken by the petitioner was in force from 13. 04. 1998 to 12. 04. 1999 and since the risk took place on 02. 05. 1999, subsequent to the expiry of the period of policy for the period 1998-99, and since risk took place prior to the payment of premium for 1999-2000, question of first respondent paying any amount, to the petitioner does not arise. In reply, the contention of the learned Counsel for the petitioner is that since premium for 1998-99 was paid on 08. 06. 1998 risk for 1998-99 should cover the period 08. 06. 1999 to 07. 06. 1999, and so the petitioner is entitled to the relief sought. He placed strong reliance on G. Laxminarasamma. V. Director A. P. Engg. Research Labs. , Himayathsagar, Hyderabad and another 1998 (4) ALD 699 case.
( 4 ) AT the outset it should be stated that the case of the petitioner is that since it took out the policy to cover the risk of its members for 1999-2000 and since its member Satyanarayana died on 03. 07. 1999 it is entitled to receive on lakh rupees from the first respondent. There is no whisper about its paying the premium for 1998-99. It is only during the course of arguments, the learned Counsel for the petitioner contended that since petitioner was a member of Janata Group Insurance policy for 1998-99 also, petitioner is entitled to the benefit under the scheme in respect of the death of its member Satyanarayana.
( 5 ) THE documents produced by the first respondent, show that the group insurance policy issued by the first respondent to the petitioner for the year 1998-99 was valid from 13. 04. 1998 to 12. 04. 1999. The risk in this case admittedly took place on 02. 05. 1999, subsequent to the expiry of the policy for the period 1998-99. The contention of the learned Counsel for the petitioner that since premium for the year 1998-99 was paid on 08. 06. 1998 the risk period should be from 08. 06. 1998 to 07. 06. 1999 and since the accident took place on 02. 05. 1999, well within the period of one year from the date of payment of premium petitioner is entitled to Rs. 50,000/- as per the policy for 1998-99 if not Rs. 1,00,000/- as per the policy of 1999-2000. I am not able to agree with his contention because the policy issued by the first respondent shows that its validity period
