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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.C. DOSHI
Oriental Insurance Company Limited – Appellant
Versus
Premvati Wd/o Puransinh Rambhai Yadav – Respondent
| Table of Content |
|---|
| 1. road accident details (Para 1 , 2) |
| 2. insurance company's defense (Para 3) |
| 3. claimants' counter-argument (Para 4) |
| 4. evidence of policy cancellation (Para 5) |
| 5. legal position on insurance (Para 6 , 7) |
ORDER :
1. The present First Appeal, under Section 173 of Motor Vehicles Act, 1988 , is preferred by the appellant – Insurance Company being aggrieved and dissatisfied with the judgment and award dated 26.06.2012 passed by the Motor Accident Claims Tribunal, Bharuch in Motor Accident Claim Petition No.397 of 2007.
2. Heard learned advocates for the respective parties.
3. Relying upon judgment of Division Bench of this Court in the case of Mansingbhai Jagabhai Amaliyar vs. Reliance General Insurance Co. Ltd. [First Appeal No. 466 of 2012], learned advocate Mr.V.C.Thomas for appellant - Insurance Company raised solitary contention that in the present case cheque issued towards premium to purchase policy was returned unpaid. It is submitted that owner was duly informed about cancellation of policy which could be inferred from the facts that subsequent to road accident but within same year, owner has purchased new policy for vehicle. Learned advocate Mr.Thomas referred to imp
Insurance companies must prove policy cancellation and notification to the insured before an accident to avoid liability for compensation.
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 liability ceases post-cancellation due to dishonoured premium cheque; only the vehicle owner is liable for compensation.
The liability of the insurer under the insurance policy and the requirement to prove cancellation of the policy and intimation to the owner of the vehicle prior to the accident.
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 ....
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