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2010 Supreme(Raj) 836
2010(2) CCR 1405 (SC)
(Supreme Court)
Oriental Insurance Co. Vs. Dharam Chand & Ors. (Alam, J.)
HON'BLE AFTAB ALAM, J.
HON'BLE R.M. LODHA, J.
Oriental Insurance Co. Ltd.
Versus
Dharam Chand & Ors.
Civil Appeal No. 5204 of 2003, decided on 27.08.2010
Headnote:Motor Vehicles act, 1988, Sec. 149 — Liability of Insurance Company — Cheque for the insurance policy was received by insurance company on 7th May 1998 — Cover not issued at the same time — Accident took place at 8.30 pm on 7th May 1998 — Held — Since the cheque for premium amount was received by the company at 4 pm, the insurance must be deemed to have commenced from that time — Owner be deemed to have been covered by insurance policy. (Para 4)
eksVj ;ku vf/kfu;e] 1988] /kkjk 149 & chek daiuh dk nkf;Ro & chek ikWfylh gsrq pSd chek daiuh }kjk 7 ebZ 1998 dks izkIr fd;k x;k & doj uksV mlh le; tkjh fd;k x;k & 7 ebZ 1998 dks lk;a 8-30 cts nq?kZVuk ?kVh & vfHkfu/kkZfjr & pwafd izhfe;e jkf'k gsrq pSd chek dEiuh }kjk lka; pkj cts izkIr fd;k x;k Fkk vr% chek ml le; ls izkjaHk gqvk gksuk ekuk tkuk pkfg;s & Lokeh dks chek ikWfylh ls vko`r gqvk ekuk tkosA ¼in la[;k 4½
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2. In this case, the premium cheque for the insurance policy was received by the appellant, the insurance company, on May 7, 1998 at 4.00 pm and a cover note was issued at the same time. In columns 3 & 4 of the cover note, however, it was stated that the insurance would commence from May 8, 1998 and expire on May 7, 1999.
3. The motor accident in regard to which the claim case was filed took place at 8:30 pm on May 7, 1998.
4. The insurance company sought to disown its liability on the plea that the accident took place before the commencement of the insurance as indicated in the cover note. But, both the Tribunal and the High Court, turned down the plea and held the insurance company liable to pay the compensation amount.
4. When this appeal was taken up, counsel for the insurance company very fairly stated that since the cheque for the premium amount was received by the company at 4:00 pm on May 7, 1998, the insurance must be deemed to have commenced from that time and four hours later when the vehicle met with the accident, the owner must be deemed to have been covered by the insurance policy. We appreciate the fairness shown by the counsel for the insurance company.
5. The appeal is dismissed but with no order as to costs.
