1. It is settled law that the liability of the insurer to indemnify the third parties subsists unless the insurance coverage is cancelled by the insurer and intimation thereof has reached the insured and the registering authority. On whom does the burden lie to prove that the insurer has so intimated about the cancellation on the dishonour of the cheque received towards premium. This is the question referred to the Full Bench for the sake of clarity in view of the following observations in United India Insurance Company Limited v. Laxmamma & Ors. (2012) 5 SCC 234:

“26. In our view, the legal position is this: where the policy of insurance is issued by an authorised insurer on receipt of cheque towards the payment of premium and such a cheque is returned dishonoured, the liability of the authorised insurer to indemnify the third parties in respect of the liability which that policy covered subsists and it has to satisfy the award of compensation by reason of the provisions of Ss.147(5) and 149(1) of the M.V. Act unless the policy of insurance is cancelled by the authorised insurer and intimation of such cancellation has reached the insured before the accident. In other words,