The commencement of the insurance policy and the liability of the insurance company are determined by the cover note and premium payment date.

( 1 ) THIS is an appeal by the appellant Oriental Insurance Co. Ltd. (hereinafter referred to as 'the insurance company') filed against the award dated 27. 8. 2003, passed by Fourth Additional motor Accidents Claims Tribunal, Sagar in Claim Case No. 73 of 2002 whereby the tribunal had awarded compensation of rs. 3,87,000 payable to claimants. However, the insurance company disputed the same stating that the accident had occurred prior to the insurance policy becoming effective and hence, the Tribunal had erred in fastening the liability on the insurance company and awarding compensation of rs. 3,87,000 to the claimants.

( 2 ) THE brief facts of the case are that rameshwar Prasad Tiwari died an accidental death on 2. 5. 1996 at 6 p. m. when he was riding the motor cycle driven by his friend Ramnarayan and it collided with the tractor bearing registration No. CIQ 2871 coming from opposite direction when they were going towards Sagar. The tractor was going from Banda to Sagar and was rashly and negligently driven by Bhawani Shankar tiwari, respondent No. 4. Claimants claimed that deceased Rameshwar Prasad tiwari was 50 years of age and was an assistant Sub-Inspector earning Rs. 4,282 per month and on various grounds claimed compensation of Rs. 9,32,000.

( 3 ) THE Tribunal on considering the evidence came to a conclusion that Bhawani shankar Tiwari, respondent No. 4, the driver was negligent and had caused the accident. Sitaram, respondent No. 5, was owner of the vehicle. Whereas insurance company, non-applicant No. 3, had resisted the claim stating that since the accident had occurred on 2. 5. 1996, the tractor was insured with the insurance company only from 4. 5. 1996 to 3. 5. 1997 according to the insurance policy issued and hence insurance company was not liable for the same.

( 4 ) THE Claims Tribunal, however, held otherwise and on the basis of the cover note issued on the date of payment of premium, i. e. , 2. 5. 1996, the insurance company was liable to pay the compensation and awarded Rs. 3,87,000 to the claimants after consideration of the evidence. The tribunal had relied on section 64-VB of the Insurance Act, 1938 by which the provision was that the time would begin to run on the date that the premium was paid irrespective of the fact that the date was not mentioned on the cover note.

( 5 ) INSURANCE company had also filed a revision bearing No. 1155 of 1997, which was dismissed by this Hon'ble court and hence the insurance company was held to be liable and none of the other grounds have been challenged by the insurance company before me. The sole controversy that requires to be resolved rests on the moot question as to what would be the effective date and time for fastening of the liability on the insurance company.

( 6 ) COUNSEL for the appellant insurance company relied on Bijeram v. Mangudas, 2004 ACJ 153 (MP), whereby a Bench of this court held that in the matters of motor insurance policy, the commencement of the policy and payment of premium to the agent vis-a-vis the liability of insurance company was considered. The court held that the owner of the offending vehicle had submitted the proposal form along with premium to the agent of the insurance company at 11 a. m. on 2. 12. 1992 and accident had occurred at 4 p. m. on 2. 12. 1992 and the insurance policy mentioned the effective time and date of insurance at 5. 30 p. m. on 2. 12. 1992 and considering the question whether the policy commenced from the time of handing over the premium amount to the agent and the insurance company is liable to pay the compensation. It held that 'no'. When the time of commencement is mentioned in the policy, it shall become effective from the time onwards as mentioned in the insurance policy. The court had relied on New India Assurance Co. Ltd. v. Bhagwati Devi, 1999 ACJ 534 (SC), that the risk under the insurance policy shall come into force from the time and date mentioned in the cover note or in the policy as the c