DIVISIONAL MANAGER NATIONAL Vs. SUBASH PARIDA

JUDGEMENT

(1.) IN this appeal Under Section 110 -D of the Motor Vehicles Act, 1939 (in short the 'Act') by National Insurance Company Ltd. (hereinafter referred to as the 'insurer'), a short but interesting point has been raised for determination,

(2.) THE insurer calls in question legality of an award made by Second Motor' Accident Claims Tribunal (S. D.), Berhampur (in short 'the 'Tribunal') quantifying entitlement of one Subash Parida, respondent No 1 at Rs. 8,500/ - being compensation for loss of two buffaloes who died on account of an accident, damage to his cart and personal injury received. The offending vehicle bearing registration No. ORG 7797 was claimed to be insured with the insurer. The insurer denies its liability to indemnify the award, so far as the owner of the vehicle is concerned, on the ground that though the vehicle was insured with it on the date of accident i.e. 11 -1 - 1986, it was not insured by the time the accident took place, and the insurance was taken some hours later. The Tribunal came to hold that insurance operates from the previous mid -night and therefore, contention of the insurer was not acceptable. According to the learned counsel for the insurance company, cover -note (Ext. A -1) issued clearly indicated time of issue to be 12 noon and therefore, the vehicle was not insured at the time of accident. The claimant however, places reliance on the copy of the insurance policy which was exhibited as Ext. A/2 as well as cover -note in both of which effective date of insurance was indicated to be 11 -1 -1986.

(3.) THE appeal being devoid of merit is dismissed, but without any cost. The claimant would be entitled to a sum of Rs. 8,500/ - with interest @6%per annum from the date of application till payment. This rate of interest would be applicable if the amount is paid within two months from today. In case payment is not made within the said time, amount shall carry interest @ 12 % per annumfrom the date of application till realisation. Costs awarded by the Tribunal stand.