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Rajasthan High Court · body

2005 DIGILAW 1490 (RAJ)

United India Insurance Co. Ltd. v. Chaini Bai

2005-05-18

J.R.GOYAL

body2005
Judgment J.R. Goyal, J.-Instant appeal has been preferred by the appellant United Insurance Co. Ltd. aggrieved from the award passed by the Motor Accident Claims Tribunal, Jhalawar dated 12.08.1994 in MAC No. 84/1988 whereby the appellant Insurance Company alongwith owner and driver of the involved vehicle were made liable jointly and severally for the payment of compensation of Rs. 62,500/-to the claimants. 2. Brief facts of the case are that deceased Bhuwana died on account of the vehicular accident which took place on 03.04.1988. The involved truck No. RJH-1095 in the accident was owned by respondent No. 6 & 7 and driven by respondent No. 5 Gangaram negligently. It was also alleged that the said truck was insured with the United India Insurance Co. Ltd. 3. Learned Tribunal while considering that the premium was deposited on 02.04.1988 held that Insurance Company is liable for the payment of the compensation in the accident which took place on 03.04.1988, though cover note was issued for a period from 04.04.1988 to 03.04.1989. 4. Aggrieved by the same the appellant Insurance Company has preferred this appeal. 5. I have heard learned Counsel for the parties and perused the record. Learned Counsel for the appellant contended that involved vehicle in the accident was insured for a period from 04.04.1988 to 03.04.1989 and this period has also been mentioned in the policy issued on 02.04.1988, this Insurance Company is not liable for any compensation on account of the accident occurred on 03.04.1988. Reliance has been placed on the Judgment rendered by the Honble Supreme Court in the case of Oriental Insurance Co. Ltd. vs. Sunita Rathi & Ors., reported in AIR 1998 Supreme Court 257, and New India Assurance Co. Ltd. vs. Sita Bai & Ors., reported in (II) 1999 ACC 451 (SC). 6. Learned Counsel for the respondents contended that premium was accepted by the agent of the Insurance Company on 02.04.1988 and cover note was also issued on the same day, thus it will be deemed that involved truck was insured w.e.f. 02.04.1988 and recital of the period by the agent on the cover note will not adversely affect on the rights of insured and third party. Reliance has been placed on the Judgment in Vasundhara & Ors. Reliance has been placed on the Judgment in Vasundhara & Ors. vs. Alisab Nadaf & Ors., reported in 2003 ACJ 2058 , wherein it was held that Insurance Company is liable for the accident after issue of cover note, though policy document has been issued by the Insurance Company lateron. In the case of Bhal Nalkantha Khadi vs. Jayantilal & Ors., reported in 1995 ACJ 976, it was held that once the authorised agent of the insurer has accepted the proposal form with the advance payment of premium in whatever mode available, the Insurance Company is bound to give insurance coverage from the date of such payment. In the case of United India Insurance Co. Ltd. vs. Shadma Begum & Ors., reported in 2002 ACJ 1185 , the Allahabad High Court observed that when premium has been received and cover note has been issued on 11.05.1995, liability of Insurance Company shall start from the date. In the case of Oriental Insurance Co. Ltd. vs. Methi & Ors., reported in 2003 ACJ 2008 , this Court held that when premium has been deposited with the agent of the Insurance Company on 12.08.1988, though amount deposited lateron by the agent in the Insurance Company, it will be deemed that policy is effective from 12.08.1988. 7. I have considered the rival submissions. The admitted fact situation is that the premium was deposited with the agent of appellant United India Insurance Co. on 02.04.1988 at 4:30 pm and cover note was also issued on the same day, but in the cover note in the 3rd coloumn the date of commencement of the policy 04.04.1988 is specifically mentioned and the date of expiry of insurance policy has been shown as 03.04.1989. Thus, it transpires that there was special contract in between the Insurance Company and the insured of the vehicle that the insurance policy shall be commenced from 04.04.1988 and shall expire on 03.04.1989. In the case of Oriental Insurance Co. Ltd. vs. Sunita Rathi & Ors., AIR 1998 SC 257 , it was held that when there is clear mention in the policy of date and also time from which it becomes effective, the Insurance Company is not liable for any accident occurred prior to that time and date. In the case of Oriental Insurance Co. Ltd. vs. Sunita Rathi & Ors., AIR 1998 SC 257 , it was held that when there is clear mention in the policy of date and also time from which it becomes effective, the Insurance Company is not liable for any accident occurred prior to that time and date. Thus, in view of the Judgment rendered by the Apex Court when in the instant case specific date 04.04.1988 has been mentioned for the commencement of the policy in the cover note itself , then in the terms of the special contract between the Insurance Company and the insured, the Insurance Company cannot be held liable for the accident occurred prior to the date of commencement of the policy i.e. 04.04.1988. 8. Resultantly, the impugned order against the appellant Insurance Company cannot be allowed to be sustained. The same is hereby set aside. The appeal consequently succeeds and is allowed in so far as the appellant Insurance Company is concerned. No. order as to costs.