K. SREEDHAR RAO, J. ( 1 ) THE petitioners in MVC 386/93 awarded compensation of Rs. 2,50,000/- for the death of one Dr. David Rubdi in the motor vehicle accident. The Tribunal directed the owner and insurer to pay the compensation. The insurer has filed this appeal seeking avoidance of the liability on the ground that no policy was in existence at the time of accident. ( 2 ) THE appellants in the objection statement contend that the premium was collected on 15. 3. 1990 at 2. 15 p. m. , and cover note is issued mentioning the time of payment of premium. The policy is issued w. e. f. 16. 3. 90 to 15. 3. 91. The accident occurred on 16. 3. 90 at 11 a. m. ( 3 ) AS per the provisions of Section 64 V-B of the Insurance Act, the liability of the insurer will arise from the time of payment of premium. In the instant case, the premium is paid at 2. 15 p. m. , and accident has occurred at 11 a. m. , which is prior payment of premium and issuance of cover note. ( 4 ) THE facts stated by the appellant may be true. The cover note is a preliminary document, but later on the insurer has issued the Policy marked at Ex. R2. The contents of the policy do not specifically indicate the time of commencement of the liability under the policy the insurance policy ex. R2 is the latest contract between the insurer and the insurer which supercedes the terms of cover note. The liability of the insurer towards the third party is to be understood from the terms of the Insurance policy-Ex. R2. However, the position may be different, if the claim of liability of the insured is only on the basis of cover note not followed by the issuance of policy or the policy shows the time of commencement of liability. Then according to time mentioned, the liability will arise. Only in the said excepted situations. The insurer can avoid liability of the third party on the ground that there is no policy but if the policy of insurance does not indicate the time of. commencement of liability. It is deemed that it commences from the midnight of the day. In that view, the insurer cannot avoid liability in respect of third party. The insurer can avoid liability of the third party on the ground that there is no policy but if the policy of insurance does not indicate the time of. commencement of liability. It is deemed that it commences from the midnight of the day. In that view, the insurer cannot avoid liability in respect of third party. ( 5 ) THE insured has participated in the proceedings. It appears to be a case of suppression of material facts by the insured while taking the cover note without informing the accident. Therefore, the insurer has to pay compensation to the petitioner with right of recovery from the insured under the same award. ( 6 ) THE Counsel for the appellant relied on the ruling of the Supreme Court in Oriental Insurance Co. Ltd. , Vs. Sunita Rathi and Others reported in 1998 ACJ 121 has no application to the facts of the case because subtle distinction pointed out in the order. The cover note and insurance policy are very much a contract. When the policy succeeds the cover note, the obligation of the insurer in respect of the third party should be construed only from the terms of policy. If the policy has not specified the time for commencement of the liability. It is deemed that the policy retrospectively commences from the midnight of the day. Accordingly, the order dictated is confirmed.