NATIONAL INSURANCE CO. LTD. Vs. NAVINDER KAUR

JUDGEMENT

(1.) THE only grievance of the appellant-Insurance Company is that it ought to have been totally exonerated from payment of liability in view of the fact that the cheque issued by the insured-respondent in lieu of the payment of premium was dis-honoured on account of insufficient funds even before the date of the impugned accident and that the Insurance Policy had already been cancelled by that time.

(2.) THE Tribunal held that the petitioner-insurer would nonetheless be liable to the 3rd party but would be entitled to be indemnified by the insured.

(3.) MR . V. Ramswaroop, learned counsel for the appellant, argued that as the Insurance Policy itself had been cancelled on 3.8.2000 long before the impugned accident had taken place on 8.9.2000, there was no policy contract at all in force on the basis whereof the appellant could be held liable to reimburse the claim and thereafter claim indemnification from the insured.