THE NEW INDIA ASSURANCE CO LTD v. PHOOL WATI

1. Instant appeal has been preferred against the impugned award dated 20.12.2012, whereby ld. Tribunal has granted compensation as under: “1. Treatment Expenses - Rs.68,837/-

2. Pain & Suffering - Rs. 50,000/-

3. Diet & Conveyance - Rs.45,000/-

4. Attendant’s Charges - Rs.16,703/-

5. Loss of Income - Rs.38,499/-

6. Disability - Rs.2,69,493/- Total - Rs.4,88,532/-”

2. Mr. Bhat, learned counsel appearing on behalf of the appellant submits that the policy issued in favour of the respondent No.2 was 2013:DHC:4931 cancelled w.e.f. 03.01.2003. Therefore, the appellant/insurance company was not liable to pay any compensation.

3. He further submitted that during pendency of the claim petition before the Tribunal, the insurance company sought information from the Central Bank of India, M-Block Market, G.K. Part-I, New Delhi as under:- “1.Date of Cheque deposited in your Bank.

2. Date of Cheque credit in our ACCOUNT.

3. The above cheque whether credited or not in our Account.”

4. Accordingly, the said bank replied vide their communication dated 24.03.2012 as under:- “Ref. your letter dated 23.3.2012 with reference to the above we have to say that the above cheque was deposited in our Bank and sent in clearing on 8.1.2003 but it was returned on 9.1.2003 the reason insufficient funds.”

5. Learned counsel submits that the accident took place on 29.04.2003 and the policy was cancelled w.e.f. 03.01.2003, therefore, appellant is not liable to pay any compensation. However, the learned Tribunal has erred in fastening the liability upon the insurance company.

6. The law is well settled that in case of cancellation of policy on any ground, the insurance company has to convey in time to the owner of the vehicle and the concerned Transport Authority to that effect. In the present case, as admitted by the counsel for the appellant, the original file of the record was misplaced, therefore, they could not place on record the proof whether they conveyed to the insured and the Transport Authority. He also admitted that they sought information from the bank in the year 2012 and the reply to the same was given by the bank on 24.03.2012.

7. Since the appellant failed to produce any documentary proof or led any evidence to the effect that they informed the insured and the concerned Transport Authority, therefore, the learned Tribunal has rightly relied upon the case titled Daddappa and others vs. Branch Manager, National Insurance Company Ltd., 2008 ACJ 581 SC.

8. I do not find any merit in the instant appeal. Accordingly, the same is dismissed.