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Supreme Court of India on insurance policy

Article Abstract by: ashok priyadarshi    

Original Author: ashok priyadarshi
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Supreme Court of India On Insurance Policy
                                                                                     by ashok priyadarshi
 
 
1.                         A policy is issued after the acceptance of the proposal, first premium for insurance and it has to be honoured by the Company as the contract for insurance is accepted. R.Ratilal & Co. vs. National Security Assurance Co. Ltd. AIR 1964 SC 1396.
2.                         Once the insured has issued a certificate of insurance the insurer has to satisfy any decree -of a claim arising out of the insured vehicle. Guru Govekar vs. Filomena F. Lobo (1988) 3 SCC 1
 
3.                          When a policy is taken on a particular date, its effectiveness is from the commencement of that date. The Insurance Policy obtained on the date of the accident became operative from the commencement of the date of insurance i.e. from the previous mid night and since the accident took place on the date of the policy the insurer became liable. New India Assurance Co. Ltd. Vs. Ram Dayal & others (1990) 2 SCC 680.
4.                         Liability of the Insurance Company will start when the policy becomes operative i.e. on the date and time the premium is paid. National Insurance Co. Ltd. vs. Jikubhai Nathuji Dabhi (1997) 1 SCC 66 see also Oriental Insurance Company Ltd. Vs. Sunita Rathi (1998) 1 SCC 365. This judgement stands confirmed by 3 judges bench of the Supreme Court in New India Assurance Company vs. Bhagwati Devi (1998) 6 SCC 534.; New India Assurance Co. Ltd. Vs.  Sita Bai and others (1999) 7 SCC 575
5.                         Before the Policy comes into effect, notice issued by the Insurance Company canceling the same in the terms of the contract as the Branch Manager was not competent to take the liability on behalf of the Company. Contract validly terminated. Policy thus not effective. State Of Orrisa vs. United India Insurance Company (1997) 5 SCC 512 : AIR 1997 SC 2671.
 
Published: July 23, 2007
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