NATIONAL INSURANCE COMPANY Vs. HAIDER ALI
LAWS(ALL)-1991-8-97
HIGH COURT OF ALLAHABAD
Decided on August 09,1991

NATIONAL INSURANCE COMPANY Appellant
VERSUS
HAIDER ALI Respondents

JUDGEMENT

K.M.Pande, J. - (1.) This revision has been preferred by the petitioner insurance company against an order of the Tribunal wherein it has been directed that the insurance company should pay Rs. 7,500/-as interim compensation in the light of Section 92-A of the Motor Vehicles Act.
(2.) Brief facts of the case are that opposite party No. 1 filed a claim petition before the Motor Accidents Claims Tribunal, Indore for compensation for injuries which have been sustained by him in a motor accident. The petitioner insurance company was also impleaded as a party on the ground that on the date of accident the vehicle was insured with it. The plea taken by the petitioner insurance company is that the policy of insurance from the very inception was void because insured opposite party No. 1 had issued a cheque against the premium which, on production before the bank, was dishonoured and he did not pay the amount of the premium for the policy of insurance which was issued to him.
(3.) In this case there was no dispute about the fact that opposite party No. 1 suffered injuries as a result of the accident and he suffered fracture in his leg at two places and a permanent disability has taken place. The vehicle was insured with the petitioner. Consequently, the Tribunal was within its jurisdiction to award interim compensation against the insurance company. In New India Assurance Co. Ltd. v. Laxman Singh, 1991 ACJ 42 (MP) , it was held: "Whether defences available under Section 96(2) can be taken into consideration while awarding interim award under Section 92-A--Held: no; the idea behind Section 92-A being payment of prompt and immediate compensation cannot be allowed to be frustrated in deciding various defences raised by insurance company; in case it is ultimately found that the insurer is not liable to indemnify the insured an appropriate order under Section 96(4) can be passed. Similar view was taken in 1990 (II) MPWN 219. In this case also, prima facie on the basis of the insurance papers the Tribunal was satisfied about the insurance of the vehicle with the petitioner insurance company and consequently, passed an order under Section 92-A.;


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