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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Dr. V.R.K. Krupa Sagar, J
Cholamandalam Ms General Insurance Co Ltd – Appellant
Versus
M. Lakshmi Narasamma – Respondent
JUDGMENT:
1. This appeal under section 173 of the Motor Vehicles Act, 1988 is filed by the appellant/ Insurance company impugning the order dated 17.07.2012 of the learned Chairman, Motor Accidents Claims Tribunal – Cum – IV Additional District Judge, Kurnool in MVOP.No.46 of 2010.
2. Heard arguments of Sri K.Srinivasa Rao, the learned counsel appeared on behalf of Sri K.Subba Rao, the learned counsel for appellant/ insurance company and Sri Butta Vijaya Bhaskar, the learned counsel for respondents/claimants.
3. Before the claims tribunal, it was a death claim filed under section 166 of the Motor Vehicles Act for a compensation of Rs.9,00,000/-. The deceased was a married man. His wife and two minor children and his parents filed the said claim as against the owner of the alleged offending tractor and trailer bearing registration Nos. AP 21 Y 6708 and AP 21 V 7793. At the material point of time, the deceased was aged 28 years. On 04.03.2009, he was crossing the road to pay a visit to Shirdi Sai Baba Temple at Aspari, Kurnool district. The offending tractor trailer being driven by its driver rashly or negligently dashed him leading to his spot death. Police registered FIR/ Ex.A1 and su
The insurance policy was deemed valid at the time of the accident, and the insurance company failed to prove its cancellation, thus liable for compensation.
An insurance policy remains in effect unless properly cancelled before an accident; insurers are liable to indemnify third-party claims unless valid evidence shows policy cancellation.
Insurance companies must prove policy cancellation and notification to the insured before an accident to avoid liability for compensation.
The burden of proof lies on the insurance company to establish the cancellation of the policy and the proper intimation to the insured before the accident, as per the Motor Vehicles Act.
The insurance company is liable to indemnify the owner in respect of the statutory liability unless the policy is cancelled and intimated to the insured before the accident.
Insurance companies remain liable for compensation despite policy cancellations due to non-payment, requiring proof of such cancellations when contested.
An insurance company cannot absolve itself from liability for a motor vehicle accident unless it proves the insured's failure to pay premium through substantial evidence, regardless of policy issues ....
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