ICICI LOMBARD GENERAL INSURANCE CO. LTD. Vs. USHA

JUDGEMENT

(1.) INSTANT appeal has been preferred against the award dated 10.07.2009, whereby, ld. Tribunal while granting the compensation amount of Rs.12,35,000/ - with interest @ 7% per annum has given the recovery rights in favour of the appellant against respondent nos. 4 and 5.

(2.) VIDE the present appeal, appellant is seeking direction to exonerate as the cheque of premium amount was bounced and in that eventuality they are not liable to pay any compensation and entitled for exoneration.

(3.) APPELLANT / insurance Company in its written statement before the ld. Tribunal took a plea that cover note filed on record is null and void ab initio because the premium cheque issued by insured against the said cover note was dishonoured and accordingly, appellant did not receive any premium against the said cover note. It was further submitted that the said cover note was duly cancelled and thus there did not exist any valid, lawful, bindings and enforceable contract of insurance, hence, the offending vehicle was not insured on the date of accident. To prove this, appellant / insurance company examined R3W1 Sh. Gaurav Malhotra, Manager (Legal) ICICI Lombard General Insurance Company Ltd., who deposed that the cover note no. PC1538383 was issued to Ms. Pooja Arora against the receipt of premium cheque bearing no. 858159 for an amount of Rs.13,456/ - drawn on Punjab and Sindh Bank. The said premium cheque issued by Ms. Pooja Arora was dishonoured on its presentation and returned back on 06.04.2006 with remarks "insufficient funds". On the non -receipt of premium, the said cover note no. PC1538383 was cancelled vide notice addressed to Ms. Pooja Arora dated 25.04.2006 sent vide UPC dated 09.05.2006 and same is Ex.R3W1/A. Copy of the notice is Ex.R3W1/B. The cover note in question was cancelled before the date of accident. The photocopy of the cover note attested by him is Ex.R3W1/C which is supplied by the claimants. In this case the intimation was given to insurer later.