UNITED INDIA INSURANCE CO LTD Vs. CHUNIBHAI VIRAMBHA

JUDGEMENT

(1.) THESE two appeals arise out of a common judgment and award rendered by the Motor Accident Claims Tribunal, Jamnagar in Claim Petition Nos.244 of 1988, 236 of 1988 and 318 of 1988 on January 20, 1996.

(2.) THE appellant ­ Insurance Company is aggrieved by the judgment and award for the reason that it has been held liable to pay compensation to the original claimants as the insurer of the vehicle involved in the accident, whereas, the case of the appellant is that on the date of accident, the policy was not valid and there was no coverage against any liability and hence, these appeals.

(3.) LEARNED advocate Mr. Nanavati for the appellant has submitted that there was no valid policy to cover the risk of insurer in respect of the vehicle involved in the accident on the date of accident. The proposal for covering the risk was only for one month and the Proposal Form would show that only 25% of annual premium is charged. The owner of the vehicle does not dispute to have signed the Proposal Form and if the proposal was for covering the risk for one month, the acceptance could not have for a larger period, particularly, the policy itself speaks for coverage only for one month, so also the Cover Note. Acceptance Advice is not a document which would have any bearing on the contract between the Insurance Company and the owner of the vehicle and there appears to be a bonafide mistake in writing the dates. These aspects have not been considered by the Tribunal while passing the award and the appellant - Insurance Company is erroneously saddled with liability. The appeal may, therefore, be allowed.