The main legal point established in the judgment is that any clause in the insurance policy running counter to the prescriptions of the Motor Vehicles Act, 1939 would be void, and the insurance policy must comply with the requirements prescribed under the provisions contained in Chapter VIII read with the Third Party Insurance Rules.

Headnote:
Insurance Policy - Effective Date - Motor Vehicles Act, 1939 - S.94, S.95, S.96 - Third Party Insurance Rules - The court discussed the provisions contained in Chapter VIII of The Motor Vehicles Act, 1939 read with the relevant rules of the Motor Vehicles (Third-Party Insurance) Rules, 1946. The court highlighted the need for insurance against third party risk under S.94 and the requirements for a policy of insurance under S.95. The court emphasized that any clause in the policy running counter to the prescriptions of the Act would be void. The court held that the insurance policy must comply with the requirements prescribed under the provisions contained in Chapter VIII read with the Third Party Insurance Rules, and the risk under the policy was deemed to have commenced from the midnight of 14-7-1985 and not from 11 AM. on 15-7-1985.
Fact of the Case:

The appeals involved a dispute regarding the effective date of the insurance policy under the Motor Vehicles Act, 1939. The appellant contended that the insurance policy was effective from 11 AM on 15-7-1985, while the claimants argued it was effective from the midnight of 14-7-1985.
Finding of the Court:

The court analyzed the provisions of the Motor Vehicles Act, 1939 and the Third Party Insurance Rules to determine the effective date of the insurance policy. The court held that any clause in the policy running counter to the prescriptions of the Act would be void, and the insurance policy must comply with the requirements prescribed under the provisions contained in Chapter VIII read with the Third Party Insurance Rules. The court concluded that the risk under the policy was deemed to have commenced from the midnight of 14-7-1985 and not from 11 AM. on 15-7-1985. The appeals were dismissed, and the cross-appeal was allowed to the extent indicated.
Issues: The main issue was the effective date of the insurance policy under the Motor Vehicles Act, 1939, and whether the insurance policy complied with the requirements prescribed under the provisions contained in Chapter VIII read with the Third Party Insurance Rules.
Ratio Decidendi: The court emphasized that any clause in the policy running counter to the prescriptions of the Act would be void, and the insurance policy must comply with the requirements prescribed under the provisions contained in Chapter VIII read with the Third Party Insurance Rules. The court held that the risk under the policy was deemed to have commenced from the midnight of 14-7-1985 and not from 11 AM. on 15-7-1985.
Final Decision: The appeals were dismissed, and the cross-appeal was allowed to the extent indicated. Respondents 1 and 2 were awarded compensation and entitled to get interest on the entire amount awarded as compensation at the rate of 12% from the date of the petition till realization.

Judgment :-

Radhakrishna Menon, J.

The common question that arises for consideration in these appeals is, whether the insurance policy was effective from 11A.M. on 15-7-1985 as contended for by the appellant or was effective with effect from the mid-night of 14-7-1985 as contended for by the claimants as well as the insured.

2. The answer to the question depends upon the construction of the provisions contained in Chapter VIII of The Motor Vehicles Act, 1939 read with the relevant rules of the Motor Vehicles (Third-Party Insurance) Rules, 1946, for short The third-Party Insurance Rules. S.94 of the Motor Vehicles Act highlights the need for insurance against third party risk. S.95 provides that in order to comply with the requirements of Chapter VIII a policy of insurance must be a policy which satisfies the requirements prescribed thereunder. Particular reference requires to be made to subsection 4 of S.95. This sub-section says that a policy shall be of no effect unless and until the insurer issues a certificate of insurance in the prescribed form and containing the prescribed particulars etc., in favour of the person by whom the policy is effected. Equally relevant is the provision contained in sub-section 3 of S.96. This Section provides that where a certificate of insurance has been issued under sub-section 4 of S.95 to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the persons insured thereby by reference to any conditions other than those in clause (b) of sub-section (2) shall, as respects such liabilities as are required to be covered by a policy under clause (b) of sub-section (1) of S.95, be of no effect. Alongside we should focus our attention on the relevant rules contained in the Third Party Insurance Rules. Rule 4 makes it imperative that the insurer shall issue to every holder of a policy a certificate of insurance in Form A set out in the schedule attached to the Rules. Similarly every policy, in the form of a cover note issued by an insurer, shall be in Form B set out in the Schedule. The above in short is the scheme of the relevant provisions pertaining to the issue of insurance policy. Going by this scheme every certificate of Insurance shall contain the following particulars.

"Certificate No. Policy No.

1. Description of the vehicles insured:

(a) Registration mark and number.

(b) Cubic capacity of the Vehicles.

(d) Carrying capacity.

2. Name and address of insured.

(3) Effective date of commencement of insurance for the purpose of the Act.

4. Date of expiry of insurance.

5. Persons or classes of persons entitled to drive.

6. Limitation as to use.

7. Insurance premium.

There shall be issued a certificate signed by the authorised insurer that the policy in which the certificate relates as well as the certificate of insurance are issued in accordance with the provisions of Chapter VIII of The Motor Vehicles Act, 1939. The insurance policy thus issued, to be valid, must be one that complies with the requirements prescribed under the provisions contained in Chapter VIII read with the Third Party Insurance Rules. If that be the position, the policy of insurance here, for the purpose of the Act, is effective from 15-7-1985. An incidental question would however, arise and it is this: What is the effective date of commencement of the insurance for the purpose of The Act?

3. The learned counsel for the appellant submits that the risk under the policy must be held to have commenced with effect from 11 AM. on 15-7-1985. In support of this argument he pressed into service the writings in the policy namely., 'effective date of commencement of insurance for the purpose of the Act 15-7-1985 (11 AM.)' and also relied on a decision of the Court of Appeal in Cornfoot v. Royal Exchange Assurance Corporation (1904 (1) KB. 40). The learned counsel for the appellant therefore argues that such clauses could be had in a policy and if there is one such

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