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United India Insurance Company ... vs Smt. Gulaichi Devi And Others

High Court Of Judicature at Allahabad|24 October, 1994

JUDGMENT / ORDER

JUDGMENT
1. This is an appeal under S. 173 of the Motor Vehicles Act.
2. Deceased Katwaru, a rikshaw puller was driving his rikshaw on 6-4-93 at about 8 a.m. when Mini Truck No. U.P./53-6935 caused accident resulting in fatal injuries to the deceased. Deceased was aged about 35 years and his dependents widow, mother and minor daughter filed application for compensation. This application was contested by appellant insurer on the ground that policy was valid till the previous day, and a fresh policy was issued at 10 a.m. subsequent to the accident. Accordingly, at that time when there was accident, there was no valid policy to make insurer liable for the payment. Tribunal on materials on record held that just compensation is Rs. 1,15,200/- which is to be paid by insurer with interest at 12% per annum from the date of presentation of the application till date of payment. This is grievance of the appellant in this appeal.
3. We are satisfied that the driver of the Mini Truck was negligent on account of which there was accident caused fatal injuries to the deceased. Thus, primarily the driver is responsible for accident. Owner of the vehicle is vicariously liable for paying the compensation. Question for consideration is whether insurer is liable to indemnify the owner and is liable to pay compensation as provided under the Act.
4. In case the premium would not have been received earlier and policy would have been issued at 10 a.m. as is disclosed from the evidence, question might have arisen for consideration whether issue of policy would relate back to mid night of the date when it was issued. This is not the case in the present appeal. Admittedly the amount of premium was received on behaif of insurer on previous day. Explanation is given that on account of closure of insurance office the policy was not issued that day. Therefore, on receipt of the premium and having agreed to issue the policy, the grant of policy itself is a ministerial act and it shall be deemed in the facts and circumstances of the case that the same was issued at the time when the premium was received or at least from the mid night of the day when it was issued. Once we come to that conclusion, insurer becomes liable from the mid night of the date of insurance policy was Issued after premium amount was received, althought the ministerial act for preparation of the policy and issuing the same was at 10 a.m. of the date of accident.
5. In the result there is no merit in this appeal. The appeal is dismissed under O. 41, R. 11, C.P.C.
6. Appeal dismissed.
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Title

United India Insurance Company ... vs Smt. Gulaichi Devi And Others

Court

High Court Of Judicature at Allahabad

JudgmentDate
24 October, 1994
Judges
  • S Mohapatra
  • V Goel