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IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR. JUSTICE JOHNSON JOHN, J
Oreintal Insurance Co.ltd. – Appellant
Versus
Devaki Amma W/o. Late Govindan Nair – Respondent
| Table of Content |
|---|
| 1. legal necessity of notification (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 2. appeal outcome (Para 15) |
JUDGMENT :
The 3rd respondent insurance company in O.P.(MV) No. 50 of 2018 on the file of the Motor Accident Claims Tribunal Vatakara filed this appeal seeking exoneration from liability.
2. According to the appellant, lorry bearing registration No. KA-21-B-882 involved in the accident on 27.05.2017, was insured with the appellant from 04.04.2017 to 03.04 2018. It is stated that the 1st respondent paid the premium by a cheque and when the cheque was presented for collection, the same was dishonoured and therefore, the appellant cancelled the policy issued to the insured and it was also informed to the insured and the registering authority as per letter dated 19.04.2017. But, the Tribunal recorded a finding that there is no evidence to show that the insurance company issued intimation regarding cancellation of policy to the registering authority before the date of the accident and therefore, the appellant insurance company is liable to pay compensation to the petitioners. The Tribunal allowed the appellant insurance company to recover the amount from the owner of
Insurance companies must notify the registering authority of policy cancellations to avoid liability, protecting third-party rights under the Motor Vehicles Act.
Insurance companies must prove policy cancellation and notification to the insured before an accident to avoid liability for compensation.
Insurers remain liable for third-party claims unless proper notice of policy cancellation is provided, following statutory obligations.
The burden of proof lies on the insurance company to establish the cancellation of the policy and the proper intimation to the insured before the accident, as per the Motor Vehicles Act.
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.
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.
Insurer liable to indemnify third-party claimants despite dishonoured premium cheque and registered post intimation of cancellation prior to accident, as public interest in third-party protection pre....
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