Cover Note issued has no validity in case insurance premium not paid on the date of accident

Last updated: 09 May 2023

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Quick Summary

The Madras High Court ruled that a cover note for vehicle insurance is invalid if the premium has not been paid on the date of the accident. In this case, a lorry owner obtained a cover note, but the premium was only paid the day after the accident. Therefore, the insurance company was not liable for the compensation claim arising from the accident.

Court :
Madras High Court

Brief :
In the case on hand, there was no insurance coverage on the date of the accident and so, the respondent No. 1 insurance company is not liable. The Tribunal has correctly found and directed respondent No. 2, owner of the lorry to pay the compensation. I find no infirmity in the finding of the Tribunal in this aspect.

Citation :
KOTHAI AND ANR. VS ORIENTAL INSURANCE CO. LTD. AND OTHERS

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Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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