Insurance liability does not exist if the insurance policy is canceled prior to the accident due to dishonored payment, as communicated to the insured.

JUDGMENT :

SANJAY KUMAR DWIVEDI, J.

Heard Mr. Ganesh C. Jha, learned counsel for the appellant and Mr. Aditya Banerjee, learned counsel for the respondent nos. 1 to 3-claimants and Mr. Vipul Poddar, learned counsel for the respondent nos. 5 to 9 who are the legal heirs/successors of the original owner.

2. This appeal has been preferred against the judgment and award dated 04.01.2023 passed by the learned District Judge-II-cum-Motor Vehicle Accidents Claims Tribunal, Jamshedpur in Motor Accident Case No. 90 of 2018 whereby, the learned Tribunal awarded sum of Rs. 55,11,207/- to the claimants along with interest @ 7.5 % per annum from the date of filing the appeal till realization, payable within 30 days.

3. Mr. Ganesh C. Jha, learned counsel for the appellant submits that the claim case was filed before the learned Tribunal alleging that the deceased, namely, Bharat Mahato aged about 28 years was a permanent employee of Tata Steel Limited, working as Operator in Coke Plant Department and having Personal No. 156834 and on 26.04.2018, he along with his friend Subhankar Mohanty (pillion driver) were going by motorcycle bearing registration No. JH- 05P-8960, belonging to the deceased and when they were near Railway Bridge, Parcel Gate and were preceding downward, the driver of 407 Truck bearing registration No.JH-05X-8561 driving it in rash and negligent manner lost control over the vehicle and dashed the motorcycle causing injuries to the deceased and the pillion rider. It was also claimed that the deceased was admitted to TMH with the help of traffic police, but could not survive and succumbed to death. He further submits that the learned Tribunal has been pleased to award the compensation without appreciating the facts in its right perspective that at the time of accident, the vehicle in question was not insured with the present appellant. He submits that the policy, which was issued prior to the accident was valid from 28.11.2017 to 27.11.2018. He also submits that the owner Natwar Kumar Jha had visited the office of the insurance company on 15.11.2017 for renewing the insurance policy which was going to expire, requesting issuance of policy for the period from 28.11.2017 to 27.11.2018 i.e. 13 days prior to expiry of the insurance, submitting a cheque of Rs. 17,098/-. He submits that the Cheque No. 254264 of Rs. 55,461/- was issued by the owner of the vehicle not only for the offending vehicle, but for few other vehicles i.e. JH-05X-8561, JH-05-BG-1137, JH-05K-1260, JH-05AV-4544 and in view of that, the policy has been issued. He submits that on 18.11.2017, the bank intimated the insurance company that the said cheque has not been honoured as the signatures of the drawer differed and in view of that, the said policy was cancelled on 21.11.2017 prior to commencement of new policy on 28.11.2017. He further submits that the accident took place on 26.04.2018 at 10:30 AM and on that day, the vehicle in question was not insured as earlier policy period has already been expired and the renewal policy issued by the insurance company, has already been cancelled by the company as the cheque was not honoured and intimation to that effect has been made by way of Ext. Y/1. He submits that however, the owner has reached to the office of the insurance company and by way of cash payment, he has obtained the new policy on 26.04.2018 at 12:27:46 PM. He further submits that the contention has been made before the learned Tribunal that subsequently the payment has already been made and policy has been issued. He submits that in light of the intimation made by the insurance company, the owner was knowing the fact of cancellation of the insurance policy and when the accident took place on