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IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
RADHAKISHAN AGRAWAL
National Insurance Company Limited – Appellant
Versus
Gajropan Yadav S/o Baldev Yadav – Respondent
| Table of Content |
|---|
| 1. fundamental facts surrounding the accident and claim. (Para 1 , 2 , 3) |
| 2. arguments regarding insurance liability. (Para 4 , 5) |
| 3. examination of insurance law provisions. (Para 8 , 10 , 11) |
| 4. ruling on insurance liability and policy validity. (Para 13 , 14) |
| 5. final decision on appeal outcome. (Para 16) |
JUDGMENT :
RADHAKISHAN AGRAWAL, J.
1. This appeal has been preferred by the appellant/Insurance Company under Section 173 of the Motor Vehicles Act, 1988, against the award dated 04.04.2015 passed by the 4th Additional Motor Accident Claims Tribunal, Ambikapur, District Surguja (C.G.) in Claim Case No. 56/2008, whereby a total compensation of Rs.4,39,000/- has been awarded along with interest at the rate of 6% per annum from the date of application till realization, while fastening the liability jointly and severally on the Insurance Company (non-applicant No.3) and the owner (non-applicant No.1). However, the Tribunal further held that the primary liability of paying the compensation would be of Insurance Company.
2. As per averments made in the claim petition, on 03.04.2000 at about 10:00 am, deceased-Madhusudhan Yadav was driving a Tractor bearing registration No.CG-
Insurers are only liable for claims if a valid insurance policy exists at the time of the accident; an unverified deposit agreement does not suffice.
Point of law: It appears that when a policy of insurance has been issued by authorised insurer, on receipt of a cheque towards the payment of a premium and such a cheque is returned dishonoured, the ....
Insurance liability can arise if premium payment is accepted prior to an accident, even if the formal policy issuance occurs later, under Section 64 VB of the Insurance Act.
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.
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.
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