UNITED INDIA INSURANCE CO. LTD. Vs. PRABHAVATI DEVI

JUDGEMENT

(1.) Heard Sri Mohan Srivastava, learned counsel for the appellant as well as Sarvasri Ramesh Chandra Tiwari and S. Shukla, appearing on behalf of the respondent Nos. 1 and 3. Respondent No. 2 is represented by Sri R.S. Misra. The appellant is the insurer of Jeep No. UPQ-1791, which was involved in an accident occurred on 6.3.1986 at 12:30 p.m. in which Jitendra, aged about seven years, died. The Tribunal awarded the compensation at Rs. 27,000/- and the owner of the vehicle as well as Insurance Company have been held liable. It has further been held by the Tribunal that since the vehicle was insured, the Insurance Company is liable to indemnify the liability of the owner of the vehicle and is liable to pay the compensation.

(2.) Learned counsel for the appellant submitted that as per the Insurance Cover Note, the vehicle was insured at 4:00 p.m. on 6th March, 1986, while the accident occurred at 12:30 p.m. on 6th March, 1986, when the vehicle was not insured. He submitted that since in the insurance policy, specific time, that is, 4:00 p.m. was mentioned, therefore, the policy came in operation after 4:00 p.m. on 6th March, 1986 and not from the midnight of 6th March, 1986. Since the vehicle was not insured at the time of accident, therefore, the Insurance Company cannot be held liable to pay the compensation. In support of the contention, he relied upon the decision of the Apex Court in the case of New India Assurance Company Limited v. Bhagwati Devi, 1998 LawSuit(SC) 178.

(3.) I find substance in the argument of learned counsel for the appellant.