ANOOP KUMAR DHAND
National Insurance Company Limited – Appellant
Versus
Rudi Devi – Respondent
JUDGMENT :
ANOOP KUMAR DHAND, J.
Both these appeals are arising out of the award dated 13.08.2002 passed by the Motor Accidents Claims Tribunal, Shahpura, District Jaipur (for short ‘the Tribunal’) in MAC Case No. 539/2001 by which the claim petition filed by the claimants has been allowed and the respondent- Insurance Company has been directed to pay compensation of Rs. 1,88,000/- to the claimants.
2. Feeling aggrieved and dissatisfied by the above award, both the Insurance Company as well as the claimants have preferred these appeals.
3. With the consent of the parties, both matters are taken up and heard together and are being decided by this common judgment.
4. Brief facts of the case are that on 28.05.1996, the deceased Ghisa Lal met with an accident caused by the driver of bus No. DL IP 0339. After the aforesaid accident, the claimants submitted the claim petition before the Tribunal against the driver, owner and Insurance Company of the vehicle. In spite of receipt of notice, the driver as well as the registered owner of the vehicle did not appear before the Tribunal, hence ex-parte proceedings were initiated against them vide order dated 07.11.1997. The Insurance Company submitt
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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.
Insurers remain liable for claims despite dishonored premiums unless cancellation notices were properly communicated prior to the accident, reinforcing the obligations established under the Motor Veh....
The court held that minor cheque dishonour does not absolve the Insurance Company of liability, and compensation must be adjusted for inflation and economic conditions.
Insurance companies must prove policy cancellation and notification to the insured before an accident to avoid liability for compensation.
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