Back
SANJAY DHAR
United India Insurance Ltd. – Appellant
Versus
Firdous Hussain Mir – Respondent
Judgment
Sanjay Dhar, J.—The instant appeal is directed against the interim award dated 09.04.2014 passed by learned Motor Accident Claims Tribunal, Srinagar, under Section 140 of the Motor Vehicles Act, in a claim petition filed by respondent No.1/claimant whereby a sum of Rs.25,000/- has been awarded by the learned Tribunal in favour of the claimant to be payable by the appellant insurance company.
2. The aforesaid interim award has been challenged by the appellant on the ground that the offending vehicle was not covered under the policy of insurance at the time of the accident, inasmuch as the policy of insurance relating to the vehicle in question had been cancelled on account of dishonour of cheque pertaining to the premium of insurance of the vehicle in question and that this aspect of the matter has not been considered by the learned Tribunal while passing the impugned interim award.
3. I have heard learned counsel for the appellant and the learned counsel for respondent No.1. I have also gone through the memo of appeal and the grounds of appeal.
4. It appears that the claim petition has arisen out of a motor vehicular accident involving vehicle bearing registration No.JK01F
The owner of the vehicle holds primary liability for interim awards under the Motor Vehicle Act, although the Insurance Company may indemnify under specific proven circumstances.
Interim compensation is not permissible under the unamended Motor Vehicles Act when not a fixed amount; offers from insurance companies require claimant acceptance to be valid.
The main legal point established in the judgment is that the liability of the Insurance Company to indemnify third parties in case of accidents is determined by the validity of the insurance policy a....
Proceedings under section 140 of the MV Act are summary and provide immediate relief without questioning fault. Findings in such proceedings are not conclusive and do not preclude raising defenses in....
Interim awards for compensation under the Motor Vehicles Act are only valid when made according to fixed amounts stipulated in the unamended Act; settlements must require claimant acceptance.
Insurance liability ceases post-cancellation due to dishonoured premium cheque; only the vehicle owner is liable for compensation.
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.
The main legal point established is that the prima facie evidence of premium payment before the accident establishes the liability of the Insurance Company.
Insurance companies must prove policy cancellation and notification to the insured before an accident to avoid liability for compensation.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
