Case: Balbir Kaur &amp; Others Vs. New India Assurance Company Ltd. &amp; Others

1. Baljit Singh, deceased was riding on a two-wheeler (scooter) bearing Registration No. DAB 6529. The said scooter was hit by a bus driven by one Ramesh Singh Rawat. He suffered multiple grievous injuries in the said accident. He was taken to Deen Dayal Upadhya, Hospital, New Delhi where he was declared `brought dead.2. Appellants filed an application before the Motor Accident Claim Tribunal, Delhi (Tribunal) under Section 166 of the Motor Vehicles Act, 1988 (for short "the Act") claiming a sum of Rs. 20,00,000/- towards compensation for death of Baljit Singh inter alia on the premise that the accident was caused by reason of rash and negligent driving of the said bus by its driver Shri Ramesh Singh Rawat.3. In the said claim petition, the income of the deceased was stated to be Rs. 4,000/- per month. He was aged 34 years on the date of accident. Indisputably, in relation to the said accident, a criminal proceeding was also initiated under Sections 279 and 304A of the Indian Penal Code.4. The Tribunal upon considering the materials brought on record by the parties awarded a sum of Rs. 7,96,000/- to the appellants. Respondent No. 1 preferred an appeal there against before the High Court. By reason of the impugned judgment, the High Court set aside the award passed by the Tribunal opining that as the cover note of the insurance had been issued on 15.03.1996 but the same was to take effect from 19.03.1996 and the accident having taken place on 18.03.1996, the insurer was not liable therefor.5. Appellants are, thus, before us.

Reasoning:
12. Section 64 VB of the Insurance Act, 1938 merely provides that no insurer shall assume any risk in India in respect of any insurance business on which premium is not ordinarily payable outside India unless and until the premium payable is received by him or is guaranteed to be paid by such persons in such manner and within such time as may be prescribed or unless and until deposit of such amount as may be prescribed, is made in advance in the prescribed manner.13. For the purpose of this case, we would assume that an insurance policy, in law, could be issued from a future date. A policy, however, which is issued from a future date must be with the consent of the holder of the policy. The insurance company cannot issue a policy unilaterally from a future date without the consent of the holder of a policy. Even the said circular letter had not been produced and/ or no material was placed as to why the policy was issued from a later date. It is, however, not necessary for us to delve deep into the matter in view of the limited notice issued by this Court.14. Respondent No. 3, however, owner of the vehicle has not questioned that part of the order passed by the High Court. He, therefore, accepted the judgment of the High Court. Accordingly, liability to pay the awarded amount by him is not in question.