UNITED INDIA INSURANCE CO. LTD. Vs. SAVITRI DEVI

JUDGEMENT

(1.) The Insurance Company has preferred the appeal against the award of compensation in Compensation Case No.171/ 1998 under Sec. 166 of the Motor Vehicle Act, 1988 whereby and where under the insurance company has been held liable for paying the compensation amount to the claimants.

(2.) The appeal has been preferred on the ground that the offending vehicle was not under its insurance cover on the date of accident 7/6/1998.

(3.) As per the claimant's case the motor vehicle accident took place on 7/6/1998 involving a jeep bearing registration No. BR-14 P-1548. The interest of the owner of the vehicle Chandra Bhusan Singh in the said vehicle was under its insurance cover from 5/5/1998 to 4/5/1999. Thereafter the cheque for a sum of Rs.7215.00 for payment of premium was submitted to the insurance company for its renewal, but the same was dishonoured due to insufficiency of fund. It was written by the State Bank of India with a remark, "insufficient fund" consequently, the Insurance Company cancelled insurance policy and intimated the owner of the vehicle (O.P.1) about it. It is argued that since the vehicle was not under its insurance cover at the relevant time of accident therefore it was not liable for paying the compensation amount.