NATIONAL INSURANCE COMPANY LIMITED Vs. INDIRABAI

JUDGEMENT

(1.) in this appeal presented by the national insurance company against an order made under Section 92-a of the Motor Vehicles Act, 1939 awarding interim compensation of Rs. 15.000/- to the respondent-claimant, the following important question of law arises for consideration: whether an insurance policy issued by an insurance company on any day expressly specifying the date and time of issue on cover note or the policy, covers the risk in respect of the accident caused earlier on the same day, by the vehicle in respect of which such policy is issued, even though the insurance premium was paid and policy was issued, after the accident?

(2.) brief facts of the case are these: respondent No. 1 presented a claim petition under Section 110-d of the 1939 act seeking compensation of Rs. 3,55,000/- towards death of her husband kallappa in a motor accident. During the pendency of the said claim petition the 1st respondent made an application under Section 92-a of the act for awarding compensation of Rs. 15,000/- on the basis of no fault liability. Before fixing no fault liability on the insurance company, according to the full bench decision of this court in united India insurance company vaminasab nadaf, ilr1990 Karnataka 16, the tribunal is required to record findings on two issues:

(3.) on 27-3-1991, when the matter came up for hearing, after hearing the learned counsel on both sides, we considered it necessary to call upon the parties to file an authenticated copy of the cover note and the insurance policy etc. On 12-4-1991, the learned counsel for the insurance company has produced the quadruplicate copy of the cover note and the insurance policy. In the cover note at column No. 3, the effective date of commencement of insurance for the purpose of the act is mentioned as 27-2-1989; against column No. 4 - date of expiry of insurance, the date given is 26-2-1990. As against column date of issue - time, it is mentioned as follows: - "date of issue 27-2-1989, time 5. 30 p.m." it also records the receipt of premium of Rs. 164/-. Subsequently, on 8-8-1991 the learned counsel for the appellant has also produced photo copy of the proposal form which bears the date 27-2-1989, as the accident had taken place at 4 a.m. on the same date, it is not disputed that the proposal form presented and premium was paid at the appellant's office after the opening of the office and it was subsequent in point of time. On the basis of the specification of not only the date but also the time of the issue on the coverjiote, the learned counsel for the insurance company contended that the risk commenced only from 5. 30 p.m. and not earlier on the same date. He submitted that in view of Section 64-vb of the insurance Act, the insurance company is debarred from covering any risk prior to the date and time of receiving the premium.