This Civil Miscellaneous Appeal has been preferred by the Insurance Company against the order of the Motor Accident Claims Tribunal, West Godavari at Eluru in O.P.No.150 of 1997. The respondents-claimants filed an application under Section 166 of the Motor Vehicle Act, 1899 claiming compensation of Rs.1,00,000/- due to the death of a lady by name Abbisetti Varalakshmi, a student aged about 19 years. The Tribunal awarded compensation of Rs.1,00,000/- as prayed for, making the owner of the vehicle and the insurance company liable to pay the compensation amount.

2. Being aggrieved by the same, the Insurance Company preferred the present appeal contending that there was no insurance coverage to the accident vehicle as on the date of accident. The Insurance Company further contended that long prior to the accident, the owner of the vehicle issued a cheque towards premium for the policy and the cheque was bounced and the amount was not paid towards premium at any time subsequently. Therefore, there was no valid insurance coverage as on the date of accident. Therefore, the insurance company is not liable to indemnify the loss of the owner of the vehicle on account