ORIENTAL INSURANCE COMPANY LIMITED Vs. NARAVATH NAJIRAM

JUDGEMENT

(1.) This Civil Miscellaneous Appeal was filed against the judgment and decree dated 9-3-1992 in OP No.5 of 1990 on the file of the Chairman (District Judge) Motor Accident Claims Tribunal, Nizamabad. The Tribunal held that the respondents 1 and 2 are liable to pay compensation of Rs.42,000.00 with interest at 12% p.a. with proportionate costs.

(2.) The appeal was filed by the Insurance Company mainly on the ground that it is not liable to indemnify the insured of the vehicle on the ground that at the time of occurrence of the accident, the policy was not in operation i.e., the accident was occurred on 23-12-1989 at 7-30 am and the owner of the vehicle has taken the policy covering the vehicle in question on 26-12-1989 which relates back to 23-12-1989. Further it is operative from 23-12-1989 to 22-12-1990, therefore, when the accident was occurred at 7-30 am and the office of the company opens at 10-30 a.m., it can be presumed that the policy was issued after 7-30 p.m. i.e., after occurrence of the accident. It is further stated that the premium was paid three days after the issuance of policy by the owner of the vehicle, therefore, it is not a valid policy under law.

(3.) In support of the above said contentions, the learned Counsel for the appellant has relied on a decision of this High Court between The New India Assurance Company Limited v. Nandyala Venkatamma and others, 1992 (2) ALT 7. The facts leading to the above decision are that the accident took place at about 8-30a.m. on 5-5-1988, by which time there was no insurance policy covering the vehicle AAW-8938 and the policy was issued on 5-5-1988, the renewal dates back from the date of expiry of the previous term and hence, there was a valid policy, and it must be deemed that the policy relates back from the mid-night of 4/5-5-1988 and therefore, the vehicle is covered by the Insurance Policy and the Company is liable to pay the compensation.