ORIENTAL INSURANCE CO, LTD. versus INDERJIT KAUR AND ORS.
Despite the bar created by Section 64-VB of the Insurance Act, 1938, the insurer issued a policy and became liable to satisfy third party compensation under Sections 147(5) and 149(1) of Motor Vehicles Act, 1988; public interest must prevail over insurer's interest and remedies lie against the insured, not third parties.
- Parties
- Appellant: Oriental Insurance Co. Ltd.; Respondents: Inderjit Kaur and Ors.
- Jurisdiction
- India
- Judgment Date
- 08 December 1997
- Procedural Posture
- Civil Appeal / Final Judgment
- Outcome
- appeal dismissed
- Legal Topics
- Premium Payment and Insurance Risk, Third Party Liability, Dishonoured Cheque Effect, Public Interest in Insurance Claims
Case Brief
Summary, issues, holding and outcome
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Parties
Oriental Insurance Co. Ltd.
Appellant
Inderjit Kaur and Ors.
Respondents
Procedural Posture
Civil Appeal / Final Judgment
Legal Issues
- 1 Whether insurer is absolved of liability to third parties due to non-payment of premium caused by dishonoured cheque
- 2 Effect of Section 64-VB of Insurance Act, 1938 in accident occurring before premium paid in cash
Ratio Decidendi
Despite the bar created by Section 64-VB of the Insurance Act, 1938, the insurer issued a policy and became liable to satisfy third party compensation under Sections 147(5) and 149(1) of Motor Vehicles Act, 1988; public interest must prevail over insurer's interest and remedies lie against the insured, not third parties.
Court Disposition
appeal dismissed
Orders
- Insurer liable to pay compensation as awarded; appeal dismissed; no order as to costs
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