Write and Get Paid Use our content
  • Sign up
  • ‎What is Shvoong?‎
  • Sign In
    Sign In
    Remember my username Forgot your password?

Summaries and Short Reviews

.

Languages
Shvoong Home>Law & Politics>Supreme Court Of India On Payment of Insurance Premium Summary

.

Supreme Court Of India On Payment of Insurance Premium

Article Abstract by: ashok priyadarshi     

Original Author: ashok priyadarshi
  • Summary rating: 5 stars (4 Ratings)
  • Visits : 310
  • words:600 
  • Comments : 0
 SUPREME COURT OF INDIA ONPAYMENT OF  INSURANCE
PREMIUM
BY  ASHOK PRIYADARSHI
1.                   Giving a Bank guarantee for premium amounts to payment of premium. Indian Hardware Stores vs. United India Insurance Company II (1994) CPJ 101 (NC).
 
2.          Repudiation of claim on the ground of non-payment of premium is no deficiency of service. LIC Of India vs. Shashi Gupta II (1994) CPJ 45 (NC)
3.                     The policy money paid by cheque but the cheque dishonoured. Repudiation of the claim on the said ground doesnot amount to deficiency of service on behalf of the Insurance Company. Decided on the basis of United India Insurance Company vs. Ayeb Mahammed 1991 ACJ 650. United India Insurance Company vs. N.Mohan Reddy I (1996) CPJ 11 (NC), New India Assurance Company Ltd. vs. Komodchandra B. Hemade & others III
(1996) CPJ 32 (NC).
 
4.                     The policy money paid by cheque, the cheque dishonoured, but policy was not avoided for the said reason. Liability of third party risk as the public interest served by the Insurance Policy must prevail over the insurer’s interest. Oriental Insurance Company Ltd. Vs.Inderjit Kaur  (1998) 1 SCC 365.
 
5.                     If the premium has not been paid and the cheque in lieu of such payment has bounced the insurance contract is void and the insurance company cannot be directed to pay the claim National Insurance Company Vs. Seema Malhotra (2001) 3 SCC 151 see also Oriental Insurance Company Vs. Jhaman Mian  2004 (2) PLJR 813 ; If the Insurance Company disputes the Insurance Policy it will have to prove the appropriate register of that year showing to insurance.Branch Manager National Insurance Company Vs. Maheshwar Prasad Singh 2007 (1) PLJR 301.   
 
6.                     Policy with regard to third party risk issued on the basis of payment made by cheque. Cheque dishonoured and the policy was cancelled subsequently. The Insurance Company cannot deny its liability in respect to third party as the right already accrued in favour of the third party. The right of the third party, who is not the signatory to the Contract of Insurance is protected as the manifest object of Chapter 11 of the Motor Vehicle Act is to insure that third party, who suffers injury due to use of Motor Vehicle may be able to get damages from the owner of the vehicle or the driver who have cause the injury. The rights of the third party to get indemnify can be exercised only against the insurer of the vehicle. Thus the Insurance Company cannot avoid liability in respect of third party. New India Assurance Company Vs. Rula & Others AIR 2000 S.C. 1082 see also The New India Assurance Company Vs. Sona Devi 2007 (1) PLJR 212
 
7.                     Mere handing over of the cheque to the bankers to be sent to the Insurance Company would not result into automatic renewal of the policy. Pradeep Kumar Jain vs. CITI Bank (1999) 6 SCC 361
 
8                     The plea that the cheque by which the premium has been paid has bounced should be supported by a certificate of the bank Sri Ishar Alloys Steel ltd. Vs.Jayaswals NECO Ltd. 2001 AIR SCW 837 see also Oriental Insurance Company Vs. Jhaman Mian  2004 (2) PLJR 813
Published: July 23, 2007
Please Rate this Review : 1 2 3 4 5
Add your comment Translate Send Link Print
Next Summary

Bookmark & share this post

.