Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract of insurance Insurance Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insurance Act, 19 38 - s. 64-B - Contract of insurance - Third party insurance - Under Motor Vehicles Act - Liability of insurer - Motor accident - Claim for compensation - Plea of insurer that accident having taken place after cancellation of policy in view of dishounour of cheque towards premium, it was not liable - Motor accident tribunal holding that insurer was liable despite dishounour of cheque - High Court reversing order of tribunal - On appeal, held: Third party liability of the insurer arising under insurance contract, would be met only if the contract is valid - In the instant case policy was not valid as premium could not be said to have been received in view of dishonour of cheque - However, in the facts of the case, direction issued to insurer to pay the claim amount, and later recover the same from the owner of the vehicle - Motor Vehicles Act, 1988 - ss. 147 and 149 - Constitution of India, 1950 - Article 142 ~ Contract. A tempo, driven by respondent No. 2 ran over the daughter of the appellant-claimant while she was sleeping in her hut. She died on the spot. Appellant filled application claiming compensation u/s 166 of Motor Vehicles Act, 1998. Respondent-insurance company took the plea that although vehicle in question was insured for the relevant period, but the cheque issued therefore having been dishonoured, the policy was cancelled and thus it was not liable. The insurer also examined witnesses, to prove cancellation of policy by producing the Postal acknowledgement showing intimation thereabout which was served to the insured and a copy of letter to RTO and the memo issued by the Bank as regards dishonour of the cheque. Tribunal allowed the claim holding that insurer was liable to pay the awarded amount despite cancellation of the contract of insurance. High Court allowed the appeal preferred by the insurance company. Hence the present appeal. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 1269 |
Petitioner | Deddappa & Ors. |
Respondent | The Branch Manager, National Insurance Co. Ltd. |
SCR | [2007] 13 S.C.R. 287 |
Judgement Date | 2007-12-12 |
Case Number | 5829 |
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