Mr. Justice S.S. Sandhawalia, President — The terminus point of time from which the insured is entitled to be indemnified for a loss fully covered by his insurers-is the solitary significant question which now survives in this complaint.

2. The facts and merits may be noticed with utmost brevity relevant to the issue aforesaid. The complainant M/s. Girdhari Lal Bansal are the owners of the Swaraj Mazda Truck admittedly insured with the Oriental Insurance Company for a sum of Rs. 1,50,000/- During the currency of the risk the said vehicle was involved in an accident on the 9th of December, 1991 in Himachal Pradesh and the complainants inevitably lodged their claim with the insurers for the full amount. The Surveyor appointed by the insurers assessed the loss at the sum of Rs. 1,50,000/- as it was a total loss. However, the opposite party procrastinated in the finalisation of the claim and it was not nearly nine months later that they informed the insured that only an amount of Rs. 1,12,375/- was payable which also would be tendered after the fulfilment of necessary formalities. Aggrieved after the present complaint was filed on the 4th of December, 1992, claiming the insured amount of Rs. 1,50,000/- and an additional compensation to the time of Rs.3,13,000/- in all plus interest and Rs. 10,000/-as costs.

3. The opposite parties in the first instance contested the complaint both on preliminary objections as also on merits. The complainant adduced oral and documentary evidence in support of its case and their witnesses were cross-examined on behalf of the opposite party.

4. However, on the 11th of March, 1993 vide a communication of the said date, the Insurers conveyed their willingness to pay an amount of Rs. 1,48,500/- against the claim subject to the completion of the requisite formalities This offer was accepted on behalf of the complainant conditionally on the ground that since the case was pending before this Commission, they would be entitled to the other ancillary reliefs claimed before it. An application dated the 31st of March, 1993 was also moved praying for a direction of the release of the offered sum of Rs. 1,48,500/-which has been replaced to by the opposite party admitting the offer, but praying that this may be directed to be paid in full final settlement of the claim after the requisite formalities of the delivery of salvage etc. has been done.

5. From the aforesaid fact situation, it would be somewhat manifest that the core question which arise herein is with regard to the time and the precise date from which the insured becomes entitled to the admitted liability for the covered risk. In behalf of the complainants the firm stand is that such entitlement begins from the very date of the accident or the arising of the cause of action and not very date of the accident or the arising of the cause of action and not later. In sharp constrast thereto the stand of the insurers is that the liability arise only after it has been determined and from the date on which it has been accepted by the insurers. It is plaint that in the present day world where insurance coverage is becoming the rule rather than the exception, that the question assumes great significance. Inevitably it calls for some indepth examination of larger principle in the absence of direct precedent.

6. Mr. L.M. Suri, the learned Senior Counsel for the complainant in an erudite and forceful submission had contended that the insured’s right to indemnification for the loss arises from the very date of the loss itself and not a day later. Replying on the nature and the under-lying premise of a general insurance contract, it was submitted that it was a contract of indemnity and necessarily such indemnification must be full and from the actual date of the loss. The firm stand was that the procedure for determination or the stage of acceptance by the insurer are irrelevant to the pristine issue. Reliance was placed by way of analogy only on a number of authoriti