ORIENTAL INSURANCE COMPANY LIMITED Vs. VEDATHAL

JUDGEMENT

(1.) AN Accident occurred on 20.5.1991 at about 2 p.m. involving the vehicle belonging to the Fourth Respondent, that vehicle being a Lorry. That Lorry ran over one Periyathambi, who was going on his Bicycle, as a Consequence of which, the said Periyathambi died. His widow and children claimed compensation impleading in their Application the owner, as also the  Insurer. Though a compensation of Rs.1,00,000/ - was claimed, the amount awarded was Rs.52,000/ -. The Claimants did not seek any enhancement, nor did the owner object that award.

(2.) THE Insurer, however, filed an Appeal contending that the Insurer is not liable for the amount of compensation awarded, as the Policy was not in force on the day on which the accident occurred. The Policy was produced before the Court which showed that the effective date of commencement of insurance for the purpose of Motor Vehicle Act was from the midnight of 21.5.1991. The Tribunal, as also the learned Single Judge took the view that the Insurer is never the less liable, as the Insurer had collected the premium on the 20th of May, 1991 and the policy had also been issued on the 20th.

(3.) IN this case, the date specified in the Policy is the effective date of commencement, which is subsequent to the date of the occurrence of the accident. It was over to the Insurer to specify such a date, as the law does not mandate that the risk should be assumed on the date on which the premium is received. The Insurer 's liability, therefore, can only be regarded as having commenced from the date specified in the Policy as the effective date of commencement of the insurance, and not earlier.