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Oriental Insurance Co. Ltd vs. Dharam Chand & Ors. dated 2010-08-27

                                                         `Non-Reportable'

 

                  IN THE SUPREME COURT OF INDIA

                   CIVIL APPELLATE JURISDICTION

 

                    CIVIL APPEAL NO.5204 OF 2003

 
 
Oriental Insurance Co. Ltd.                                 Appellant
 
                                   Versus
 
Dharam Chand & Ors.
Respondents
 
 
 
                               JUDGMENT
 
 
AFTAB ALAM, J.
 
 

1.    This appeal arises from a motor accident claim.

 

2.    In this case, the premium cheque for the insurance policy was received

 
by the appellant, the insurance company, on May 7, 1998 at 4.00 pm and a
 

cover note was issued at the same time. In columns 3 & 4 of the cover note,

 

however, it was stated that the insurance would commence from May 8,

 

1998 and expire on May 7, 1999.

 

3.     The motor accident in regard to which the claim case was filed took

 

place at 8:30 pm on May 7, 1998.

 

4.     The insurance company sought to disown its liability on the plea that

 

the accident took place before the commencement of the insurance as

 

indicated in the cover note. But, both the Tribunal and the High Court,


                                                                                      2

 
 

turned down the plea and held the insurance company liable to pay the

 
compensation amount.
 

4.    When this appeal was taken up, counsel for the insurance company

 

very fairly stated that since the cheque for the premium amount was received

 

by the company at 4:00 pm on May 7, 1998, the insurance must be deemed

 

to have commenced from that time and four hours later when the vehicle

 

met with the accident, the owner must be deemed to have been covered by

 

the insurance policy. We appreciate the fairness shown by the counsel for

 
the insurance company.
 

5.    The appeal is dismissed but with no order as to costs.

 
 
 

                                                 ....................................J.

                                               (AFTAB ALAM)

 
 
 
                                                  ....................................J.

                                                (R.M. LODHA)

 
New Delhi
August 27, 2010.

 


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