Case Note & Summary
The appellant, an insurer, challenged the judgment and award dated 11.11.2013 passed by the Motor Accident Claim Tribunal, Jalna, in M.A.C.P. No.16/2011, which awarded compensation to the claimants for the accidental death of their son due to alleged negligent driving. The claimants sought compensation of Rs.7,00,000/- under Section 166 of the Motor Vehicle Act, and the Tribunal awarded Rs.4,45,500/- with interest. The insurer contended that the insurance policy had been cancelled prior to the accident due to a dishonoured cheque and claimed that it should be exonerated from liability. However, the claimants argued that the insurer's cancellation plea was raised for the first time in the appeal and lacked evidence. The court noted that the insurer did not provide any evidence to support its claim of policy cancellation, including the absence of witness examination or documentary proof. The court referred to a precedent where the Supreme Court held that without proper communication of policy cancellation to the insured, the insurer could not avoid liability. Ultimately, the court dismissed the appeal, affirming the Tribunal's decision and ordered costs against the insurer.
Headnote
A) Insurance Law - Policy Cancellation - Burden of Proof - Motor Vehicle Act, 1988, Section 166 - The insurer claimed that the policy was cancelled due to dishonoured cheque but failed to provide evidence of communication regarding cancellation to the insured prior to the accident. The Tribunal's award in favour of the claimants was upheld as the insurer did not substantiate its defence. Held that the insurer's appeal was dismissed (Paras 5-6).
Issue of Consideration
Whether the insurance policy issued by the appellant was in subsistence as on the date of accident and whether the cancellation of the policy was duly proved.
Final Decision
The appeal was dismissed with costs, and the amount deposited in the appeal was ordered to be released in favour of the claimants.
Law Points
- Insurance policy validity
- cancellation of insurance policy
- burden of proof
- Motor Vehicle Act
- compensation claims
