Case Note & Summary
The case involves an appeal by the United India Insurance Company Limited against the judgment and award dated 28.09.2011 in MVC No.142/2009 passed by the Principal Senior Civil Judge & MACT-II, Bidar. The claimant, Yeshappa, was traveling in a Maxi Cab bearing registration No.KA-32-1568 on 7.5.2008 at about 1.00 p.m. when the vehicle met with an accident due to rash and negligent driving, causing injuries to the claimant. The Tribunal awarded compensation of Rs.1,60,200/- with interest at 6% p.a. from the date of petition till payment. The insurance company appealed, contending that the earlier policy had expired on 9.2.2008 and the premium for a new policy was paid only on 7.5.2008 at 2.21 p.m., which was about 1½ hours after the accident. The court examined the evidence, including the FIR (Ex.P1) and complaint (Ex.P2), which showed the accident occurred at 1.00 p.m. on 7.5.2008. The insurance company's witness (RW1) testified that the policy was issued at 2.21 p.m. on the same day. The court found that since the policy was taken after the accident, there was no contract of insurance in existence at the time of the accident, and therefore the insurance company was not liable. The court allowed the appeal, set aside the award against the insurance company, and directed the owner of the vehicle to pay the compensation.
Headnote
A) Motor Accident Claims - Insurance Policy - Liability - Policy taken after accident - The insurance company is not liable to pay compensation if the policy of insurance was issued after the accident had occurred, as there is no contract of insurance in existence at the time of the accident. (Paras 4-6)
Issue of Consideration
Whether the insurance company is liable to pay compensation when the policy of insurance was taken after the accident had occurred.
Final Decision
Appeal allowed. The judgment and award dated 28.09.2011 in MVC No.142/2009 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.
Law Points
- Insurance policy taken after accident
- no liability
- Motor Vehicles Act
- 1988
- Section 173(1)
- premium paid post-accident
