UNITED INDIA INSURANCE COMPANY LTD Vs. CHAMPABAI

JUDGEMENT

(1.) passed by Member, Motor Accident Claims Tribunal, Beed in Motor Accident Claim Petition No.65/2011 whereunder a sum of Rs.8,40,000.00 has been awarded as compensation on account of death in vehicular accident and directed to be paid jointly and severally by the appellant Insurance Company and the owner of the vehicle involved in the accident. The challenge is mainly on the ground of dishonour of cheque issued by the insured towards payment of premium of the insurance cover.

(2.) Heard. Learned counsel for the appellant - Insurance Company would submit that, the premium was paid by cheque. The cheque was dishonoured on its presentation for encashment. The appellant Insurance Company, therefore, cancelled the contract of insurance. It has, therefore, no liability to pay any compensation. He would further submit that, if the Court holds the appellant Insurance Company to be liable to pay the compensation to a third party, it be held to be entitled to recover the amount of compensation to be paid by it from the insured. In support of his submissions, learned counsel for the appellant relied on the judgment of the Apex Court in case of United India Insurance Company Limited Vs. Laxmamma and others, [ (2012) 5 SCC 234 ].

(3.) Learned counsel for the respondent would support the impugned and award.