Case: Oriental Insurance Co.Ltd Vs. Porselvi

The factual position is almost undisputed and the only dispute relates to the date of commencement of the policy i.e. the date from which the policy was in operation. The accident took place on 28/5/1996. The policy covers the period from 29/5/1996 to 28/5/1997.The High Court in para 13 of the impugned judgment held asthe cover note has already been issued on 28.5.1996 itself, which is also entered in Ex. B1, Policy, the finding of the Tribunal fastening liability on the appellant cannot be termed as perverse. In view of the above discussion, there is no merit in this appeal. The quantum of compensation has not been disputed by the appellant – Insurance Company. In the result, the Civil Miscellaneous Appeal fails and the same is dismissed."

Reasoning: A three Judge Bench of this Court in New India Assurance Co. Ltd. Vs. Sita Bai (Smt.) and Ors. [(1999) 7 SCC 575)  inter alia observed as followsThe correctness and applicability of the judgment in Ram Dayal case [(1990) 2 SCC 680]  came up for consideration before this Court subsequently in a number of cases. In New India Assurance Co. vs. Bhagwati Devi [(1998) 6 SCC 534]  aBench of this Court relied upon the view taken in National Insurance Co. Ltd. vs. Jikubhai Nathuji Dabhi [(1997) 1 SCC 66]  wherein it had been held that if there is a special contract, mentioning in the policy the time when it was bought, the insurance policy would be operative from that time and not from the previous midnight as was the case in Ram Dayal case where no time from which the insurance policy was to become effective had been mentioned. It was held that should there be no contract to the contrary, an insurance policy becomes operative from the previous midnight, when bought during the day following, but in cases where there is a mention of the specific time for the purchase of the policy, then a special contract comes into being and the policy becomes effective from the time mentioned in the cover note/the policy itself. The judgment in Jikubhai case has been subsequently followed in Oriental Insurance Co. Ltd. vs. Sunita Rathi [(1998) 1 SCC 365]  by aBench of this Court also.