Insurance – Compensation – Cancellation of policy prior to accident – Onus on the Insurer to produce documents and prove cancellation for dis-honour of cheque and intimation to insured prior to the accident
The Tribunal passed an Award for compensation against the respondents including Insurer, jointly and severally for the accidental death of son of the claimants due to rash driving of the tanker on 28.9.2010.
The Insurer contended that the policy was cancelled due to dis-honour of cheque and intimated to the RTO & insured by registered post.
HELD that it was obligatory on the part of the Insurer to place on record the documents that the policy was issued against cheque for premium payment, it was presented to the Bank and it was dishonoured. Accordingly, the policy was cancelled and notice of such cancellation was duly communicated to the insured. Except the averments in the written statement and producing the policy, no witness was examined by the Insurer. The documentary evidence of copy of dishonoured cheque or copy of communication made to the vehicle owner or copies of acknowledgement regarding service of communication are not brought on record. In the absence of service of communication of cancellation of policy to the insured, the defence of the Insurer cannot be accepted.
Judgment dated 6.5.2024 in First Appeal No.3105 of 2013 of The New India Assurance Co. Ltd Vs. Sow. Shantabai w/o. Bhausaheb Bidve and others
