ORIENTAL INSURANCE COMPANY LIMITED Vs. RAMKHILAWAN DHRUV

JUDGEMENT

(1.) This is insurer's appeal against the award dated 02.01.2010 passed by the IXth Addl. Motor Accident Claims Tribunal, Raipur (for short 'the Tribunal') in claim case No. 71/09.

(2.) The only question falls for consideration of this court is : whether the appellant/The Oriental Insurance Company Limited (insurer) is absolved of its obligations to the third party under the policy of insurance because the cheque given by the owner of the vehicle towards the premium got dishonoured and subsequent to the accident, the insurer cancelled the policy of insurance.

(3.) As against compensation of Rs. 21,79,000/- claimed by the claimant/Ramkhilawan Dhruv by filing application under Section 166 of the Motor Vehicles Act, 1988 (for short 'MV Act') for the injuries sustained by him in the motor accident on 28.11.2007, the Tribunal awarded a total sum of Rs. 20,000/- along with interest @ 6 percent per annum from the date of application till its actual payment.