UNITED INDIA INSURANCE CO LTD Vs. HAJRA

JUDGEMENT

(1.) THIS appeal by the insurer involves a short question for decision relating to its liability under the policy of insurance issued subsequent to the accident even though it was issued sometime later on the same day. The Tribunal by deciding Issue No. 3 has held the insurer liable.

(2.) THE Motor Accident occurred on 21.8.1987 at about 10.30 A.M. On the same day at 5 P.M. cover note for insurance of the vehicle involved in the accident was obtained by the insured. The insurer pleaded before the tribunal that because at the time of accident there was no insurance covering the said vehicle therefore it was not liable. The tribunal held that policy was valid for whole of the day i.e. 21.8.1987 as such the insurer cannot escape liability.

(3.) IN New India Insurance Company v. Ram Dayal and Ors., 1990 (2) SCR 570 the Apex Court has held that in the absence of any specific time being mentioned, the logical inference to draw was that the insurance became effective from the previous mid -night and therefore an accident which took place on the date of policy, the insurer became liable. If the present case is held to be covered by Ram Dayals judgment the order of the tribunal would be perfectly valid. However Ld. Counsel for the appellant submits that case would now be covered by the following judgments of the Apex Court.