ORIENTAL INSURANCE CO LTD Vs. RUTH

JUDGEMENT

(1.) The petitioners in MVC 386/93 awarded compensation of Rs.2,50,000/- for the death of one Dr. David Rubdi in the motor vehicle accident. The Tribunal directed the owner and insurer to pay the compensation. The insurer has filed this appeal seeking avoidance of the liability on the ground that no policy was in existence at the time of accident.

(2.) The appellants in the objection statement contend that the premium was collected on 15.3.1990 at 2.15 p.m., and cover note is issued mentioning the time of payment of premium. The policy is issued w.e.f. 16.3.90 to 15.3.91. The accident occurred on 16.3.90 at 11 a.m.

(3.) As per the provisions of Section 64 V-B of the Insurance Act, the liability of the insurer will arise from the time of payment of premium. In the instant case, the premium is paid at 2.15 p.m., and accident has occurred at 11 a.m., which is prior payment of premium and issuance of cover note.