Back
2006 Supreme(Online)(KER) 1035
HIGH COURT OF KERALA
K.S.RADHAKRISHNAN, J
NATIONAL INS.CO. LTD. – Appellant
Versus
THANKA – Respondent
MFA 1471 1997
ADV. SRI.MATHEWS JACOB, M/S. SRI.K.LAKSHMINARAYANAN & SMT.SATHYA SHREEPRIYA, ADV.SRI. P.VIJAYA BHANU
An insurance policy’s effective date is crucial in determining liability; if an accident occurs before the policy’s commencement, the insurer cannot be held responsible.
Headnote:
Insurance - Claim Liability - Motor Vehicles Act Section 146 - The court held that the insurance policy was not valid at the time of the accident, thus relieving the insurer from liability, based on the interpretation of policy commencement timing.
Fact of the Case:
The motor cycle involved in the accident was insured under a policy that became effective only after the accident occurred, leading to a claim for compensation against the insurer.
Issues: The primary issue was whether the insurance cover was valid at the time of the accident, affecting the liability of the insurance company.
Ratio Decidendi: Policies issued during the day apply from midnight unless explicitly stated otherwise. Since the policy’s start time conflicted with the accident time, the insurer was not liable.
Final Decision: The appeal is allowed; the insurer is not liable for the compensation award.
JUDGMENT
This appeal is by an insurance company.
2. A motor cycle belonging to the fifth respondent met with an accident. The sixth respondent was riding the motor cycle at the time of the accident. The original claimant, who is now no more, was a pedestrian. The compensation was directed to be paid by the appellant, who was the third respondent before the Tribunal, on the premise that the vehicle was covered by a valid policy at the time of insurance.
3. The accident occurred at 10.45 a.m. on 12-3-
1990. The insurance policy was availed at 2.20 p.m. on that day. These are matters on record. By the decision of the Apex Court inNational Insurance Co.Ltd. v. Jikubhai Nathuji Dabhi (Smt) and others (1997 (1) S.C.C. 66), a policy issued during a particular day relates back to the commencement of that day, that is, to the previous midnight. Later on, the Apex Court clarified the judgment inNew India Assurance Co.Ltd. v. Ram Dayal (1990 (1) K.L.T. 817 (S.C.) and stated that if, in a policy, the time of commencement of insurance is specifically shown, then the policy of insurance will be applicable only from that point of time. Applying the said principle, the vehicle involved in the accident did not have a valid insurance at 10.45 a.m. on 12-3-1990, when the accident happened. It was covered by a valid policy only from 2.20 p.m. that day. The result is that the insurer cannot be made liable to satisfy the impugned award. It is stated that as a condition for granting stay at the time of admission, the appellant insurer had deposited 50% of the amount due under the award. The learned counsel for the claimants submitted that a portion of same has been withdrawn by the claimants. In the aforesaid circumstances, on finding that the insurer is not liable to satisfy the award, it is directed that if the claimants have already withdrawn any portion of the amount deposited by the insurer before the Tribunal, the claimants will not be liable to repay the amount to the appellant insurer and the appellant insurer will be entitled to reimbursement of such amount from the fifth respondent registered owner in execution of the impugned award as modified by this appellate award. The appeal is allowed to the above extent. There will be no order as to costs. It is also directed that in view of this appellate award, the claimants will be entitled to recover the award amount from respondents 1 and 2 before the Tribunal (respondents 5 and 6 herein)
jointly and severally.
Thottathil B.Radhakrishnan, Judge.
sl.
Thottathil B. Radhakrishnan, J.
M.F.A.No.1471 of 1997
JUDGMENT
Dated:3-10-2006
