NATIONAL INSURANCE CO LTD Vs. GURMIT SINGH

JUDGEMENT

(1.) The present case is covered by the decision of the Supreme Court in National Insurance Company Ltd. V/s. Sunita Rathi and Anr., 1997 9 JT 767, wherein it has been held that if occurrence had taken place on the day of purchasing the insurance policy prior to the time of effectiveness of the policy mentioned therein, the Insurance Company will not be liable. The District Forum vide order dated December 23,1996 allowed the complaint filed by Gurmit Singh and Paramjit Singh with a direction to the National Insurance Company to pay a sum of Rs.1,65,000/- along with 18% p. a. interest thereon w. e. f. the date of the complaint till payment. The complainants after taking loan from The Gangsar Jaitu Primary Co- operative Agricultural Bank Ltd.-opposite party No.1 purchased a tractor of Ford make-3620 in May, 1995. The aforesaid Bank was given the margin money of Rs.33,262/- alongwith Rs.2,253/- as premium for obtaining the insurance policy for the tractor. The said tractor was purchased by the complainants vide Bill No.22 dated June 7,1995. On the following day, i. e. June 8,1995, the complainants were taking their tractor for cultivating their land. It was being driven by Sukhdev Singh. An accident took place involving the tractor with Oil Tanker No. DNG-0984 driven by one Lal Chand resulting in death of Sukhdev Singh and Kuldip Singh. Two she-buffaloes which were being carried in tractor trolley also died alongwith one calf. FIR No.194 was registered at Police Station, Dabwali against the driver of the Oil Tanker. A claim was lodged with the National Insurance Company opposite party No.2, who had issued cover note covering risk for the period June 8, 1995 to June 7, 1996. The Insurance Company repudiated the claim on April 26,1996 on the ground that the accident had taken place at about 9.00 a. m. on June 8, 1995 whereas the Cover Note was issued at 10.00 a. m. This led the complainants to approach the District Forum. The Insurance Company contested the claim on the ground on which the claim was repudiated as briefly mentioned above. The Bank was also impleaded as a party and broadly admitted the sale of the tractor and purchase of the policy. On evidence led by the parties on affidavits and documents, the impugned order was passed by the District Forum. It was held by the District Forum that a policy issued on a particular day would have effect from the midnight and thus the risk of the tractor was covered and the repudiation made was illegal. As assessed by the Surveyor appointed by the Insurance Company the amount of Rs.1,65,000/- was ordered to be paid to the complainant by the Insurance Company.

(2.) Copy of the insurance policy/cover Note is Annexure 1. Clause 3 thereof provides for effective date of commencement of Insurance for the purpose of the Act from 8.6.1995, time 10.00 a. m. The time of issuing of the policy is also as above. In this way of the matter and in view of the decision of the Supreme Court in Sunita Rathi's case , the Insurance Company cannot be made liable for damage caused to the tractor on account of accident which had occurred at about 9.00 a. m. i. e. prior to the effective time of enforcement of the policy. Earlier decision of the Supreme Court in New India Insurance Company V/s. Ram Dayal and Others,1990 2JT 680, holding that the insurance policy would be effective from midnight was distinguished on the ground that in Sunita Rathi's case, the insurance policy specifically mentioned the time of enforcement of the policy. Hence in the present case the incident having occurred before that time as mentioned in the policy, the Insurance Company was not liable under the policy.

(3.) Further question that arises in this case is as to whether the repudiation of the claim by the Insurance Company is illegal or arbitrary? That depends upon the material collected by the Insurance Company to come to the conclusion that the accident had in fact taken place at about 9.00 a. m. i. e. prior to the issuance of the policy. The accident had taken place at a sufficient distance from the village (about 14 kms. ). The FIR was lodged in the evening which is not helpful in deciding the time of the accident. M/s. Deep and Company was appointed as Surveyor and Investigators, who had submitted their report Annexure 7, which mentions the details of the occurrence. The insured tractor was alleged to have started from the village on June 8, 1995 in the morning. When the tractor trolley was 6/7 kms. from Dabwali, it was involved in accident with the Oil Takner. Annexure 8 is the report of the Investigator, Harpreet Singh. It was noticed that Sukhdev Singh with the tractor had left the Village Ram Singh Wala at about 3.00 a. m. on June 8, 1995. They started from Bathinda towards Chormar between 6.00 to 7.00 a. m. After the accident, the buffaloes and the persons were injured and taken to Civil Hospital, Sirsa. Subsequently, the Investigating Officer recorded the statement at about 2.30 p. m. on June 8,1995, which was sent to Police Station, Dabwali for registration of the case. Some witnesses of course stated that the accident had taken place at about 10.30 a. m. or 11.00 a. m. In the FIR, Satpal Singh stated that the accident had occurred at about 10.30 a. m. , which was just on rough estimate. According to Gurdev Singh, Lumberdar Raj Singh had informed Biker Singh at about 9.30 a. m. about the accident. Rajwinder Singh, Lumberdar of Village Jalalana corroborated the statement of Gurdev Singh that he left Dabwali for his village in a Jeep between 8.00 to 9.00 a. m. He noticed the accident on the main road. Baltej Singh, Sarpanch of Village Neelanwali also corroborated the accident having taken place at about 9.15 a. m. The Civil Hospital, Sirsa's record was also examined where the time of arrival of the injured was stated to be 10.50 a. m. From that place, the place of accident was 51 kms. From the aforesaid material, it was opined that the accident had taken place at about 9.00 a. m. on June 8, 1995. Annexure 9 is letter of repudiation of the claim by the Insurance Company stating that the accident had occurred at 9.00 a. m. and the policy was issued at 10.00 a. m. on June 8, 1995. In view of the material aforesaid, it cannot be said that the decision taken by the Insurance Company was mala fide and arbitrary. Rather the same was based on material collected and bona fide decision taken. Thus, it cannot be said that there was any deficiency in rendering service on the part of the Insurance Company while repudiating the claim. For the reasons recorded above, this appeal is allowed. Order of the District Forum granting compensation is set aside. The complaint is dismissed. It is left to the complainants, if so advised to seek remedy in the Civil Court where detailed enquiry can be held after producing necessary evidence. There will be no order as to costs.