‘Non-Reportable’

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.5204 OF 2003

Oriental Insurance Co. Ltd.                     Appellant

Versus

Dharam Chand & Ors.       Respondents

JUDGMENT

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  

compensation amount.

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.   

.……….……...................J.                                                     (AFTAB ALAM)          

………..……...................J.                                                  (R.M. LODHA)         

New Delhi August 27, 2010.

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