TATA AIG GENERAL INSURANCE CO. LTD. Vs. BALAGURUVAIAH

JUDGEMENT

(1.) THE Insurance Company has filed this appeal, inter alia contending that as on the date of accident, policy issued by Insurance Company had been cancelled as cheque issued by insured towards payment of premium was dishonoured and the same was intimated to insured and concerned Regional Transport Office, in terms of section 64VB of the Insurance Act, 1938 (for short, 'the Insurance Act'). The Tribunal has held that cheque issued by insured towards payment of premium was dishonoured and this fact was brought to the notice of insured and cancellation of policy has been intimated to II -respondent as also concerned Regional Transport Office. The Tribunal by following the judgment of the Supreme Court, reported in : 1991 ACJ 650 (in the case of United India Insurance Co. Ltd. Vs. Ayeb Mohammed & others) has held that Insurance Company is not liable to pay compensation.

(2.) THE Tribunal by referring to the judgment of the Supreme Court reported in : 2008 AIR SCW 3251 (in the case of Oriental Insurance Co. Ltd. Vs. Zaharulnisha & others) has held that Insurance Company is liable to pay compensation to claimants (third party) and recover the same from insured.

(3.) IN my considered opinion, the judgment of the Supreme Court, reported in : 2008 AIR SCW 3251 (in the case of Oriental Insurance Co. Ltd. Vs. Zaharulnisha & others) has no bearing on facts of the instant case.