Oriental Insurance Co. Ltd vs. Dharam Chand & Ors. dated 2010-08-27
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.5204 OF 2003
Oriental Insurance Co. Ltd. Appellant
Dharam Chand & Ors.
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,
turned down the plea and held the insurance company liable to pay the
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.
August 27, 2010.