The commencement of an insurance policy is determined by the time of payment of the insurance premium, and the Insurance Company cannot unilaterally fix the starting point for policy coverage.

N. Kirubakaran, J.

The appeals have been preferred by the Insurance Company assailing the award on the grounds of:

1. No existing policy.

2. The claimants were unauthorised persons.

Three M.A.C.T.O.Ps were disposed by a common judgment passed on 29.08.2007 in M.C.O.P. Nos. 122,123 and 124 of 2004 and therefore, these appeals are also dealt with and disposed of by this common judgment.

2. The first respondent in respective appeals were travelling in a van insured with the appellant which was engaged for carrying flower bags to Chennai on hire charges. As the goods were perishable goods and the same were to be delivered in time. The van was driven rashly and negligently and the vehicle fell into a pit and caused injuries to the first respondent in these appeals. Therefore, claim petitions were filed. The said claim petitions were resisted by the appellant/Insurance Company, contending that the first respondents/claimants are unauthorised passengers and there was no valid insurance policy.

3. The Tribunal, on enquiry found that:

(i) The van was driven in a rash and negligent manner and the driver of the said van was responsible for the accident.

(ii) There was existing policy and third respondent/third claimant are not unauthorised passengers.

Aggrieved by the same only the Insurance Company is before this Court.

4. Mr. M. Krishnamoorthy, learned counsel appearing for the appellant would submit that the Insurance Company in specific stated in paragraphs 3 of the counter statement that the accident took place on 27.10.1999 at 11.00 p.m., and the policy took effect only from 28.10.1999 and therefore, there was no valid insurance coverage. In paragraphs 4, it is stated that the first respondents/claimants travelled as unauthorised passengers. He specifically referred Ex. R1 Insurance Policy and submits that it is noted in R1 policy that the policy takes effect from 0.00 hours on 28.10.1999 i.e. Midnight whereas the accident occurred on the previous date namely 27.10.1999 at 11.00 p.m., therefore, there is no insurance coverage. He relied upon the following judgments.

1. New India Assurance Company Limited v. Sita Bai and others, reported in 2000 ACJ 40 (SC).

2. National Insurance Company Limited v. N. Ponnaiyan and others, reported in 2005 ACJ 1103 (Madras).

3. National Insurance Company Limited v. Geetha and others, reported in 2006 ACJ 700 (Madras).

4. Pahari Lal and others v. Mahesh Ram and others, reported in 2006 ACJ 1853 (MP).

5. Branch Manager, National Insurance Company Limited v. Hamza and another, reported in 2005 ACJ 325 (Karnataka).

Relying upon the above judgments, the learned counsel would strongly argue that the time mentioned in the Insurance cover alone would be the starting point of Insurance coverage and not the date of payment of premium.

5. On the other hand Mr. P.S. Kothandaraman, learned counsel appearing for the respondents/claimants would support the award of the Tribunal by contending that the coverage would come into effect from the time of payment.

6. Heard the parties and perused the records.

7. It is an admitted fact that the accident occurred on 27.10.1999 at 11.00 p.m. when the first respondents/first claimants in all the C.M.As. were travelling in the van which fell into a pit causing injuries. It is seen from Exh. P5 - payment receipt issued by the appellant/Insurance Company that the amount was paid in respect of the van on 27.10.1999. Whereas Ex. R1 the Insurance Policy states that the policy period commences by 0.00 hours on 28.10.1999 i.e. mid night on 28.10.2000. It is noted in Ex. R1 that the Insurance Policy was issued on 27.10.1999 itself, when the amount premium was collected on 27.10.1999 and the Insurance policy was also issued on 27.10.1999. When the above is the position, the Insurance Company cannot postpone and fix the policy period from 0.00 hours on 28.10.1999. No reason was given as to why the period is fixed from 0.00 hours on 28.10.1999, especially when the amount was received and policy