The insurance company is liable for compensation if the vehicle was covered by a valid cover note on the date of the accident, regardless of the subsequent formal policy issuance date.

Judgment On Board

1. Since the common question of law and facts are involved in the present two appeals, they have been clubbed together, heard together and are being decided by this common judgment.

2. These two appeals have been filed by the appellants/Insurance Company under Section 173 of the Motor Vehicles Act, 1988 (for short “Act of 1988”). Out of two appeals one MAC No.215 of 2019 has been filed against the impugned award dated 31.01.2018 passed by the 2nd Additional Motor Accident Claims Tribunal, District Rajnandgaon, Chhattisgarh (for short “Claims Tribunal”) in Claim Case No. 54/2011, and another appeal i.e. MAC No.198 of 2019 has also been filed against the impugned award dated 31.01.2018 passed by the 2nd Additional Motor Accident Claims Tribunal, District Rajnandgaon, Chhattisgarh (for short “Claims Tribunal”) in Claim Case No.221/2011, whereby the Claims Tribunal allowed the claimants’ applications. Against the Claim Case No.54/2011, the claimant / respondent No.1 in MAC No.215 of 2019, has filed the cross objection seeking enhancement in the compensation amount.

3. Mr. Dashrath Gupta, learned counsel for the appellants/Insurance Company in both the appeals, would submit that the offending vehicle was not duly insured on the date of accident i.e. 12.04.2011 and the policy was issued on 16.04.2011 for the period from 16.04.2011 to 15.04.2012, therefore, the Insurance Company is not liable to pay the compensation to the claimant(s).

4. Mr. Utsav Mahiswar, learned counsel for respondent No.1/claimant in MAC No.215 of 2019, while supporting the impugned award and pressing the cross objection would oppose the prayer made by learned counsel for the appellant and submit that T.S. Netam (NAW -2), officer of the appellant – Insurance Company has clearly stated that the vehicle was duly insured for the period from 16.04.11 to 15.04.2012 vide Ex.P/4 and premium of ₹54,982/- was paid which is mentioned in the registered vide Ex.P/5, therefore, the Insurance Company cannot escape from its liability. He would further submit that the compensation amount is liable to be enhanced to the tune of ₹58,500/- in total under the heads of physical and mental agony, special diet, attendant and transportation.

5. I have heard learned counsel for the parties, considered their rival submissions made herein above and gone through the records with utmost circumspection.

6. Though the Claims Tribunal has relied upon the officer of the Insurance Company to the facts that the vehicle was duly insured from 16.04.2011 to 15.04.2012 vide Ex.D/4 and premium was paid though cheque No.202980 dated 13.04.2011 duly mentioned in Ex.D/5, however, the Claims Tribunal has also relied upon the fact that the vehicle was duly insured with the cover note for the period from 28.03.2011 to 27.03.2012. In that view of the matter, the Insurance Company could not escape from its liability and, therefore, the Claims Tribunal has rightly fastened the liability upon the Insurance Company.

7. Furthermore, so far as the cross objection is concerned, considering the facts and circumstance of the case, I am of the considered opinion to enhance total amount of ₹58,500/- under the heads of physical and mental agony, special diet, attendant and transportation, meaning thereby, the total compensation amount would be ₹2,09,000/- (₹1,50,500 + 58,500).

However, the other direction contained in the impugned award shall remain as it is and the same is applicable on the amount enhanced by this Court.

8. Consequently, both the a