NATIONAL INSURANCE CO LTD Vs. RANCHOOR SINGH

JUDGEMENT

(1.) This appeal is filed by the insurance company under section 173 of the Motor Vehicles Act, 1988, challenging the award dated 28.10.1991 passed by the Motor Accidents Claims Tribunal/Third Additional Judge to the court of District Judge, Gwalior (for short, 'the Claims Tribunal') in Claim Case No. 189 of 1998, whereby the Claims Tribunal has awarded an amount of Rs. 30,000 with 12 per cent interest per annum towards compensation for the death of a 12-year old girl Manoj Kumari.

(2.) The claimants have also filed cross-objections for enhancement of the amount of compensation.

(3.) The main contention raised by the learned counsel for the appellant is that the insurance company is not liable to indemnify the said award, as the vehicle was insured with the insurance company on 15.9.1986 at 3.15 p.m., while the accident occurred on 15.9.1986 at 6,45 a.m. Exh. D1 is the cover note mentioning this fact that premium was deposited by the insured on 15.9.1986 at about 3.15 p.m. Exh. D2 is the insurance policy issued on the basis of the cover note Exh. D1. Contention of the learned counsel for the appellant is that once time is mentioned on the cover note, then the liability of the insurance company to indemnify the loss starts from that time and not from the zero hours of the said date. According to the learned counsel the accident has taken place on 15.9.1986 at about 6.45 a.m., i.e., before issuing the cover note; hence, the insurance company is not liable to indemnify the said award. For this purpose counsel for the appellant has relied on the judgments of the Apex Court in cases of Oriental Insurance Co. Ltd. v. Sunita Rathi, 1998 ACJ 121 (SC); National Insurance Co. Ltd. v. Jikubhai Nathuji Dabhi, 1997 ACJ 351 (SC) and National Insurance Co. Ltd. v. Chinto Devi, 2000 ACJ 1597 (SC). In all these cases the Apex Court has laid down that once the time is mentioned in the cover note then the risk of the insurer starts from that time and not from the midnight.