Case: New India Assurance Company Limited Vs. Rakesh Talwar

A Motor Accident Claims Tribunal passed an award for Rs. 1, 30, 000 in favour of the legal heirs of the victim of the accident. Thecompany with whom the vehicle was insured on the relevant date was ordered to pay the amount awarded to the claimants. The relieved insured did not file any appeal against the award, but the insurance company went to the High Court with an appeal contending that the insurance policy was actually taken by the insured only subsequent to the time of accident and therefore in the light of the decision of aBench of this court in Oriental Insurance Co. Ltd. v. Sunitha Rathi 1997 SC 1146 the insurance company cannot be mulcted with the liability.A Division Bench of the High Court of Punjab and Haryana repelled the said plea of thecompany on the sole ground that"the appellant could not establish its plea nor did it lead any evidence in this regard." *The appeal was consequently dismissed by the High Court as per the impugned judgment.

Reasoning:
The insured was the registered owner of the vehicle which was involved in the accident. He was examined before the Tribunal asHe did not utter one word as to the time when the insurance policy was taken, despite the specific plea made by thethrough the written statement filed before the Tribunal that the insurance policy was taken at 2.30 p.m. on October 17, 1996. That apart, an officer of the insurance company was examined asand he has proved the certified copy of the cover note issued in respect of the same policy showing the time when the policy was issued. The copy of the cover note shows 2.30 p.m. as the time when the policy was issued. When he wasa suggestion was put to him by the claimants counsel that the vehicle was insured at 9 a.m. on October 17, 1996. It is significant to note that no question was put to that witness on behalf of the insured.The factual premise on which the Division Bench of the High Court concluded that the insurance company failed to lead evidence to show the time when the insurance was taken is thereforeThe evidence of the insurer referred to by us earlier remains uncontroverted so far as the insured respondent is concerned. He is bound by the decision of theBench of this court in Oriental Insurance Co. Ltd. v. Sunitha Rathi 1997 SC 1146.