ORIENTAL INSURANCE CO LTD Vs. WASEEM

JUDGEMENT

(1.) COUNSEL for the appellant contends that in case of cancellation of insurance policy there has to be complete exoneration of liability of the insurance company. The contention of the counsel for the appellant is that insurance company has been made responsible to pay the amount and then recover it from the insured although the contract itself was cancelled. Counsel for the appellant has placed reliance on the recent judgment of the Supreme Court in Daddappa v. Branch manager, National Insurance Co. Ltd. , 2008 ACJ 581 (SC ).

(2.) I have heard learned counsel for the appellant. At the first blush, I found myself in agreement with the counsel for appellant but after closely examining the facts of the present case, I do not find that the ratio of the said judgment is applicable in the facts of this case.

(3.) IN this case, Tribunal has observed in the award that the appellant insurance company did not intimate to the Registering authority about the cancellation of the insurance policy. As per section 147 of the motor Vehicles Act, it is the statutory duty of the insurance company to intimate to the Registering Authority of the offending vehicle about the cancellation of the insurance cover note/policy within a period of one week. Reference is made to para 24 of the impugned award wherein the Tribunal has made the said observations. The same is reproduced as under: