Case Note & Summary
The case involves an appeal by the United India Insurance Company against the judgment and award of the Motor Accidents Claims Tribunal, Bidar, which had allowed a claim petition filed by the claimant Yeshappa. The claimant was injured in a motor vehicle accident on 7.5.2008 at about 1:00 p.m. while traveling in a Maxi Cab bearing registration No.KA-32-1568, due to the rash and negligent driving of the driver. The Tribunal awarded compensation of Rs.1,60,200/- with interest at 6% per annum from the date of petition. The insurance company appealed, contending that it was not liable to pay compensation because the insurance policy for the offending vehicle was taken after the accident. The facts revealed that the earlier policy had expired on 9.2.2008, and the premium for a new policy was paid on 7.5.2008 at 2:21 p.m., which was about 1 hour and 21 minutes after the accident occurred at 1:00 p.m. The insurance company argued that since the policy was not in force at the time of the accident, it could not be held liable. The court examined the evidence, including the FIR (Ex.P1) and complaint (Ex.P2) showing the accident time, and the policy documents showing the premium payment time. The court agreed with the insurance company, holding that the policy was taken after the accident and therefore the insurer was not liable. The court set aside the award against the insurance company and directed the owner of the vehicle to pay the compensation. The appeal was allowed.
Headnote
A) Motor Vehicles Act - Insurance - Liability of Insurer - Policy Taken After Accident - The insurer is not liable to pay compensation where the insurance policy was issued after the accident occurred, as the risk was not covered at the time of accident. The court held that the premium paid at 2:21 p.m. on the date of accident cannot cover an accident that occurred at 1:00 p.m. on the same day. (Paras 4-6) B) Motor Vehicles Act - Evidence - Burden of Proof - The insurer must prove that the policy was taken after the accident by adducing evidence such as policy documents and premium receipt. In this case, the insurer successfully proved that the earlier policy expired on 9.2.2008 and the new policy was issued on 7.5.2008 at 2:21 p.m., after the accident at 1:00 p.m. (Paras 4-5)
Issue of Consideration
Whether the insurance company is liable to pay compensation when the insurance policy was taken after the accident had already occurred.
Final Decision
Appeal allowed. The judgment and award dated 28.09.2011 in MVC No.142/2009 passed by the Prl. Senior Civil Judge & MACT-II, Bidar, is set aside insofar as it fastens liability on the appellant-insurance company. The owner of the vehicle (respondent No.2) is directed to pay the compensation awarded to the claimant.
Law Points
- Insurance policy taken after accident is invalid
- Insurer not liable for accident occurring before policy inception
- Burden of proof on insurer to show policy was taken after accident
- Section 173(1) Motor Vehicles Act
- 1988
