- (1.) BY this appeal the Insurance Company is seeking to challenge the order of the High Court which has made it liable to pay the claimant even though the insurance policy was taken out on the same day as the accident. The Tribunal has held that as the policy was taken out on the same day, it shall be deemed to be effective from midnight of the preceding day. The High Court dismissed the appeal in limine.
(2.) THE question whether the Insurance Company can be held liable under such circumstances has been considered by this Court in various decisions. In New India Assurance Co. Ltd. Vs. Ram Dayal a two-Judge Bench of this Court has upheld the view of the High Court that the policy would be operative from the commencement of the date of insurance i.e. from the previous midnight and that the Insurance Company would thus be liable. However, it must be noted that in this case the policy did not mention that time at which it was issued. The question again came up for consideration in National Insurance Co. Ltd. Vs. Jikubhai Nathuji Dabhi. Reliance was placed on the abovementioned judgments. However, a three-Judge Bench of this Court noted that the Tribunal had recorded, as a fact, that the policy had come into force at 4.00 p.m. whereas the accident had taken place at 11.40 a.m. This Court held that in view of the special contract and in view of the fact that the accident had occurred earlier, the insurance coverage would not enable the claimant to seek recovery from the Insurance Company.
(3.) THE question again arose in Oriental Insurance Co. Ltd. Vs. Sunita Rathi and again Ram Dayal case was relied upon. This Court distinguished Ram Dayal case1 and held that as the cover note itself showed that the effective date and time of the policy was after the accident, the Insurance Company would not be liable.;