OREINTAL INSURANCE CO.LTD. Vs. DEVAKI AMMA

JUDGEMENT

(1.) The 3rd respondent insurance company in O.P.(MV) No. 50 of 2018 on the file of the Motor Accident Claims Tribunal Vatakara filed this appeal seeking exoneration from liability.

(2.) According to the appellant, lorry bearing registration No. KA-21-B-882 involved in the accident on 27/5/2017, was insured with the appellant from 4/4/2017 to 03.04 2018. It is stated that the 1st respondent paid the premium by a cheque and when the cheque was presented for collection, the same was dishonoured and therefore, the appellant cancelled the policy issued to the insured and it was also informed to the insured and the registering authority as per letter dtd. 19/4/2017. But, the Tribunal recorded a finding that there is no evidence to show that the insurance company issued intimation regarding cancellation of policy to the registering authority before the date of the accident and therefore, the appellant insurance company is liable to pay compensation to the petitioners. The Tribunal allowed the appellant insurance company to recover the amount from the owner of the vehicle after payment to the claim petitioners.

(3.) Heard Sri. A.R. George, the learned counsel for the appellant insurance company and Sri. M.S. Amal Dharsan, the learned counsel for respondents 1 to 4.