An insurance policy covers the risk from midnight of the day it is taken, regardless of the time of the accident.

Respondent No. 1, who was petitioner before the Motor Accidents Claims Tribunal, Jammu had filed a claim petition for compensation. His case was that on 27.12.1990, he was going to school on foot and was walking along the side of the road from his home. He was knocked down by a vehicle (truck) bearing registration No. JKR/3275. He got seriously injured and as a result thereof, his right leg was amputated while his left leg was badly bruised. The petitioners age at the time of accident was only eleven years. He became a crippled person and even could not continue with his education. He filed the claim petition against the driver, owner of the vehicle and also the Insurance company. The Tribunal on the basis of pleadings of the parties, framed the following issues :

1) Whether on 27.12.1990 on the National Highway near Kohli Mandi Samba respondent No.2 plied motor truck No. 32757JKR, rashly and negligently with the result that the vehicle went on the wrong side of the road and hit the petitioner causing him such injuries as have led to his permanent disablement? OPP

2) On proof of issue No. l, whether the petitioner is entitled to any compensation, if so, how much, from whom and in what proportion? OPP

3) Whether the alleged offending vehicle was not insured on the relevant time with respondent/Insurance Company, If so, what is its effect? OPR-3

4) Whether respondent No. 1 was not holding a valid driving licence at the relevant time and was plying the vehicle without any insurance cover, if so, what is its effect? OPR-3

5) Relief.

Only the Insurance Company i.e. United Insurance Company has filed this appeal, and other parties/respondents to the claim petition have not filed any appeal against the award dated: 27.04.1993.

It is only against issue No. 3 which has been decided by the Tribunal in favour of the claimant petitioner, that the present appellants seem to be aggrieved of. Therefore, in this appeal, this Court will consider the finding of finding of the Tribunal on issue No. 3 only.

In their objections filed before the Motor Accidents Claims Tribunal, the appellant herein took a specific plea that the vehicle bearing registration No. 3275/JKR which was involved in the accident, was not insured with them at the time of accident. They have placed on record an earlier Policy with regard to the vehicle, which was effective from 21.12.1989 upto 20.12.1990. Since this policy was effective only upto 20.12.1990, it could not cover the risk after 20th of December, 1990. A fresh policy was taken by the owner of the vehicle on 27.12.1990, which was to remain effective upto 26.12.1991. The appellants have placed a cover note of the policy on record before the Tribunal as well this Court. The counsel for the appellant submitted that admittedly, the accident took place around 10 A.M. in the morning of 27.12.1990. He further submitted that the Insurance Policy was effective from 4 P.M. on 27.12.1990, therefore, they were not liable to pay any compensation, as the accident had taken place at around 10 A.M. in the morning on the said day. At that point of time, the said vehicle was not insured, therefore, they cannot be held liable to pay any compensation to respondent No: 1.

The counsel for the respondents on the other hand submitted that it is not the time of accident which is material in this case, but the date is material. Since, the policy was taken on 27th of December, 1991, the appellants were liable to cover the risk from the midnight of 26th/ 27th December, 1991, because it is at the midnight that the days starts. It is immaterial at what time during the day the Insurance Policy was taken by the Insurer. He has placed reliance upon various judgments, including the judgment of the Supreme Court in case New India Assurance Company V/s Ram Dayal and others reported in 1990 ACJ page 545. The facts of the case before Supreme Court were also similar to the facts of the present case. The Insurance Company in that case had also pleaded that

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