Liability of the Insurance Company for compensation when the validity of the insurance cover note is in dispute and proper intimation about the missing cover note is not given.

Suresh Kait, J. (Oral)

1. The present appeal has been preferred against the impugned award dated 15.10.2011, whereby the learned Tribunal has granted compensation for an amount of Rs.14,18,200/- with interest at the rate of 7.5% per annum from the date of filing of the petition till realization of the amount.

2. The appellants are aggrieved with the findings of the learned Tribunal that the Insurance Company is not liable to pay any compensation, accordingly directed the respondent Nos. 2 and 3 to pay the compensation amount in favour of the appellants, hence the present appeal.

3. Learned counsel appearing on behalf of the appellants/claimants submits that the respondent No.1/Insurance Company examined Shri Navneet Goel, Assistance Manager (Legal) of the company as R3W1, who deposed that the policy cover note No.109000677707 from book No.90135542 was lost on 22.01.2010 from the custody of Destimoney Enterprises Pvt. Ltd., regarding which the said company intimated the respondent insurance company on 27.10.2010, accordingly an FIR got lodged on the same day.

4. Ld. Counsel further submitted that during cross-examination, R3W1 stated that the respondent company did not get any premium against the said cover note and he could not tell as to who had received the cash against the said cover note.

5. Moreover, the said witness has categorically admitted that the respondent company did not inform about the loss of cover note to the owner of the vehicle or the authority concerned.

6. Learned counsel further submitted that respondent Nos. 2 and 3, i.e., driver and owner of the offending vehicle filed their written statement, wherein, the respondent No.3/owner of the offending vehicle has specifically admitted that the vehicle was insured with respondent No.1 and accordingly produced the cover note of the same.

7. It is an admitted fact that neither the book of the cover note was produced before the learned Tribunal nor the informant of the FIR was examined by the respondent company. It is also admitted that no information was given to the owner of the vehicle or the concerned authority regarding missing of the cover note or registration of the FIR.

8. I note, the informant of the FIR was Rahul Kumar, however, the counsel for respondent No.1/Insurance Company failed to tell this court under what capacity the said Rahul Kumar lodged the FIR regarding missing of the cover note.

9. When such a dispute arises and the owner of the vehicle produced the cover note and states on oath that his vehicle was insured with the Insurance Company and; if the said cover note is found not valid or forged and; the intimation regarding missing of the said cover note has not been given to the concerned authority or the owner of the vehicle, then in such an eventuality, liability to pay the compensation rests upon the Insurance Company.

10. For the loss of cover note in question FIR was lodged. Both the parties are not aware about the outcome of the FIR. If, after investigation, the police has filed charge-sheet against the owner of the offending vehicle, then the insurance company is entitled to recover the amount from him, otherwise not.

11. In view of the above discussion, I am of the considered opinion that the learned Tribunal has erred in not fastening the liability upon the Insurance Company. Accordingly, the respondent No.1/Insurance Company is held responsible to deposit the compensation amount in the first instance and thereafter recover the same from respondent no.3, owner of the offending vehicle in view of Para 10 above.

12. Consequently, order dated 15.10.2011 is set aside to the extent as stated in Para 11 above.

13. Consequently, the respondent No.1/Insurance Company is directed to deposit the entire compensation amount with up-to-date interest accrued thereon with the Registrar General of this Court within a period of five weeks from today.

14. On deposit, the Registrar General shall release the award amount in favour of the respondents/claiman