NEW INDIA ASSURANCE CO. LTD. Vs. GOPIKABAI

JUDGEMENT

(1.) THIS appeal is preferred against the judgment and Award passed on 04.04.1995 in Claim Petition No. 76 of 1994 delivered by the Motor Accident Claims Tribunal, Bhandara, awarding compensation of Rs. 1,23,000/ - to respondents 1 to 4 on account of loss suffered by them by the death of husband of respondent no. 1 and father of respondents 2 to 4 in an accident resulting from rash and negligent driving of a motor vehicle by respondent no. 5 and owned by respondent no. 6 and insured with the appellant.

(2.) ACCORDING to the appellant, the appellant could not have been made jointly and severally liable to pay the compensation, as at the time of accident there was no contract of insurance in existence between the appellant and the owner of the vehicle involved in the accident. He submits that although there was a cover note bearing No. 012958 issued on 15.4.1994 (Ex. 23) providing cover of insurance for the vehicle involved in the accident, it was valid only for 14 days and since the cheque given by the owner towards payment of premium was dishonoured, no insurance policy was issued and the cover note expired after the lapse of 14 days from 15.4.1994. He submits that subsequently the insurance policy was issued but it was only on 10.5.1994 after the premium was paid by respondent no. 6. Hence, the policy was valid only from 10.5.1994 to 19.5.1994. He submits that the accident had occurred on 09.5.1994, just one day before issuance of the policy and, therefore, the appellant cannot be held liable to pay any compensation.

(3.) HAVING heard learned counsel for the appellant and learned counsel for respondents 1 to 4, and having gone through the impugned judgment and Award, one can see that there was absolutely no defence taken in this regard by the appellant. The appellant did not file any written statement and the claim petition proceeded against it without any written statement. There is also no material produced on record by the appellant regarding lapse of cover note and non existence of any contract of insurance between the appellant and the truck owner. Had there been any material placed on record, this Court would have considered to take its cognizance appropriately within the parameters of law. Learned counsel for appellant submits that appellant learnt about lapse of cover note after the Tribunal gave its judgment and award in this case. However, this cannot be accepted as the appellant could have verified its record and checked about the factual position. The appellant did not do so. It did not even file any written statement. There is no material on record that intimation of cancellation or lapse of cover note was given by the appellant to the owner of vehicle involved in the accident. In the absence of any material on record, the contention that there was no insurance contract in existence at the time of accident, cannot be accepted.