Insurance Company is not liable to make the payment of compensation to claimant if the policy is not renewed by the insurer- Rajasthan High Court

HIGH COURT OF JUDICATURE FOR RAJASTHAN

BENCH AT JAIPUR

S.B. Civil Miscellaneous Appeal No. 1956/2002

National Insurance Company Limited, Cover Note No. 289893 Branch Office, 2, (3) Civil Lines, Bareilly valid from 4.10.1995 to 3.10.1996 Insurer Company Vehicle No. DL 1P 0339, through its Regional Office at 10, Narain Singh Road, Jaipur – 302004                                                                                        ----Appellant

Versus

1. Mst. Rudi Devi Widow of Ghisa Lal, aged 41 years,

2. Kalu Ram Son of Late Shri Ghisa Lal, aged 19 years,

3. Ram Chandra son of Late Shri Ghisa Lal, aged 13 years,

4. Kumari Meera daughter of late Ghisa lal, aged 15 years

5. Kumari Hansa, daughter of late Ghisalal, aged 8 years,

6. Madanlal s/o late Ghisalal, aged 11 years (Respondent Nos. 3 to 6 are minors, through their Natural Guardian and mother, Rudi Devi, respondent no.1 All residents of Chharsa, Tehsil Shahpura, District Jaipur)

7. Ashok Choudhary son of Laxman Das Choudhary Resident of Plot No. 3455, Dariba Pan, Paharganj, New Delhi Owner

8. Ramesh Chandra son of Hari Narain, resident of House No. 652,/1C Jakhira Chowk, Hanuman Tample, Police Station Saraikola, New Delhi, 110053 Driver                                                                                                                                                                                                                                                                               ----Respondents

Connected With

S.B. Civil Miscellaneous Appeal No. 411/2003

1. Mst. Rudi Devi Widow of Ghisa Lal, aged 41 years,

2. Kalu Ram Son of Late Shri Ghisa Lal, aged 19 years,

3. Ram Chandra son of Late Shri Ghisa Lal, aged 13 years,

4. Kumari Meera daughter of late Ghisa lal, aged 15 years

5. Kumari Hansa, daughter of late Ghisalal, aged 8 years,

6. Madanlal s/o late Ghisalal, aged 10 years (Minors are through their Natural Guardian and mother Mst. Rudi Devi wife of Late Shri Ghesa Lal All residents of Chharsa, Tehsil Shahpura, District Jaipur

----Appellant

Versus

1. Ashok Choudhary son of Laxman Das Choudhary Resident of Plot No. 3455, Dariba Pan, Paharganj, New Delhi Owner of bus (Downloaded on 21/06/2023 at 05:32:23 PM) 2. Ramesh Chandra son of Shri Hari Narain, resident of House No. 652,/1, C Jakhira Chowk, Hanuman Tample, Police Station Saraikola, New Delhi-53 Driver of Bus No. DL 1P/0339

3. National Insurance Company Limited through Regional Manager, Regional Office, 10 Narain Singh Road, Jnarain Singh Circle, Jaipur ----Respondent

For Insurance Co.(s) : Mr. Ganesh Joshi For Claimants(s) : Mr. Lokesh Gaur Ms. Sapna Saxena HON'BLE MR. JUSTICE ANOOP KUMAR DHAND

Judgment

Reportable 04/04/2023

1. Both these appeals are arising out of the award dated 13.08.2002 passed by the Motor Accidents Claims Tribunal, Shahpura, District Jaipur (for short ‘the Tribunal’) in MAC Case No. 539/2001 by which the claim petition filed by the claimants has been allowed and the respondent-Insurance Company has been directed to pay compensation of Rs. 1,88,000/- to the claimants.

2. Feeling aggrieved and dissatisfied by the above award, both the Insurance Company as well as the claimants have preferred these appeals.

3. With the consent of the parties, both matters are taken up and heard together and are being decided by this common judgment.

4. Brief facts of the case are that on 28.05.1996, the deceased Ghisa Lal met with an accident caused by the driver of bus No. DL 1P 0339. After the aforesaid accident, the claimants submitted the claim petition before the Tribunal against the driver, (Downloaded on 21/06/2023 at 05:32:23 PM) owner and Insurance Company of the vehicle. In spite of receipt of notice, the driver as well as the registered owner of the vehicle did not appear before the Tribunal, hence ex-parte proceedings were initiated against them vide order dated 07.11.1997. The Insurance Company submitted its reply and denied the averments of the claim petition and submitted that the vehicle in question was not insured on the date of accident i.e. 28.05.1996. It was pleaded in the reply that for renewal of the insurance policy, premium was paid by the registered owner of the vehicle to the Insurance Company vide cheque No. 201745 on 04.10.1995 and on the basis of the said cheque, a cover note was issued. Subsequently, the aforesaid cheque was dishonoured and hence the insurance policy was cancelled by the Insurance Company on 08.12.1995 and an intimation in this regard was sent to the registered owner of the vehicle by registered post. It was also pleaded by the Insurance Company before the Tribunal that since the vehicle was not insured on the date of accident, hence the Insurance Company is not liable to pay any amount of compensation to the claimants.

5. After hearing the arguments of both side, the Tribunal discarded the plea taken by the Insurance Company and allowed the claim petition filed by the claimants directing the Insurance Company as well as the registered owner and driver of the vehicle to pay the amount of compensation of Rs. 1,88,000/- to the claimants.

6. Counsel for the Insurance Company submits that the accident occurred on 28.05.1996. He further submits that the registered owner of the vehicle issued a cheque bearing No. 201745 for renewal of the insurance policy of the vehicle in

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