NATIONAL INSURANCE COMPANY LIMITED Vs. C.ALEXANDER

JUDGEMENT

(1.) THESE Civil Miscellaneous Appeals are filed by the Insurance Company against the Judgement and Decree dated 4.7.2002 made in MCOP.Nos.2616 and 3579/1997 by the learned VI Judge, Small Causes Court (MACT) Chennai, whereby the Tribunal awarded a sum of Rs.68,000.00 as total compensation to the claimant in MCOP.No.2616/1997 and Rs.3,75,000.00 as total compensation to the claimant in MCOP.No.3579/1997 with interest at 9 per cent p.a. from the date of the claim petition till the date of realization for the injuries suffered by them in the motor accident that had occurred on 11.6.1997.

(2.) ON 11.6.1997, when the Respondents/claimants were proceeding in a motorcycle, it was hit by a van, as a result of which, both the rider/claimant in MCOP.No.2616/1997 and the pillion rider/claimant in MCOP.No.3579/1997 sustained grievous injuries. The Appellant Insurance Company, who was the 2nd Respondent in the claim petitions, disclaimed its liability on the ground that there was no subsisting Insurance Policy in respect of the Van on the date of the accident. The vehicle was covered by the policy for the period from 12.1.1996 to 11.1.1997 in Policy No.500401/31/41/95/4276 issued in lieu of Cover Note NO.390664. The owner of the vehicle had issued a cheque on 30.1.1997, but the same was returned for want of funds. The Appellant informed the fact of dishonour and the cancellation of the policy to the owner of the vehicle and the said intimation was sent by RPAD. There was no response from the owner and therefore, according to the Appellant, the policy was deemed to have been cancelled. The Appellant, therefore, contended that on the date of the accident, that is, on 11.6.1997, there was no policy.

(3.) IN this context, the decision of the Honourable Supreme Court reported in 2008-ACJ-581-SC (Daddappa Vs. Branch Manager, National Insurance Co. Limited) has been relied upon. In the said case, the accident took place on 6.2.1998 and it was long after the communication as to the cancellation of the Insurance Company. The Honourable Supreme Court referred to Section 64B of the Motor Vehicles Act, which provides that no risk will be assumed unless premium is received in advance and after extracting the said Section observed as follows:-