NEW INDIA ASSURANCE COMPANY Vs. KAREEMUNNISA
SUPREME COURT OF INDIA
NEW INDIA ASSURANCE COMPANY
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(2.)WHEN notice on the special leave petition was issued, this is what was stated:
"The question in this case is whether the Insurance Company can be permitted to realise the amount from the insured on the premise that the Policy was taken subsequent to the accident. SLP as against respondent No.2 will stand dismissed. Issue notice to the 1st respondent, the owner of the vehicle, who is also the insured."
The policy of insurance gives the effective date of commencement as "22.9.1986 ..1.10
PM". Thereafter is printed, "(BOTH DAYS INCLUSIVE)". Relying upon what is in
brackets, the Tribunal and the court below came to the conclusion that the Insurance
Company was liable even though the accident in question had occurred at 11.30 a.m.
on the same day, i.e., before the issuance of the policy. The point in question would
appear to be covered by the judgment of this Court in Oriental Insurance Company
Limited v. Sunita Rathi and Others, 1998 (1) SCC 365, where it has been held that the
insurer cannot be held liable when the time of insurance of the policy is mentioned
thereon and the accident has occurred before that time.
Accordingly the appeal of the Insurance Company has to be allowed. The entire award amount must, therefore, be recovered from the insured - respondent.
Order on the appeal accordingly.
No order as to costs.
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