Car insurance applicable from premium payment date: Andhra Pradesh HC
VIJAYAWADA: The Andhra Pradesh High Court has made it clear that the motor vehicle accident insurance will be applicable from the date of premium payment. The court gave the verdict recently while hearing a petition filed by an insurance company challenging a tribunal order, which asked the petitioner to pay an insurance amount of Rs 30,000 to a woman, who suffered injuries in an accident.
On June 21, 2000, Gandavarapu Ratnamma got down from an RTC bus at Nellore bus stand and was walking towards a flower shop, when she was hit by a car. A case was registered and the tribunal in Nellore had ordered payment of Rs 30,000 as compensation to her in 2004.
The United India Insurance Company Nellore divisional manager had filed an appeal in the High Court against the tribunal order. The insurance company informed the court that the accident took place at 11 am on June 21, 2000 and the insurance policy of the car owner came into implementation from 5 pm of June 22, 2000. The insurance company said it was not bound to pay the amount as the policy was issued a day after the premium amount was paid.
The court said the accident insurance of a motor vehicle comes into effect as soon as the premium amount is paid. It dismissed the argument of the insurance company that the insurance cover comes into effect from the day the policy was issued. The person who took the insurance, would be of the view that the insurance cover comes into effect soon after the premium was paid.
The court said the insurance company could not shed off it responsibility by stating that the insurance cover would come into force from the date and time mentioned in the policy.Dismissing the petition, the court asked the insurance company to pay an additional Rs 70,000 and enhanced the total compensation to Rs 1 lakh.
The court said the compensation was enhanced even as there was no appeal for the same from the accident victim considering the gravity of the injuries. “The Motor Vehicle Act rules are more in favour of an accident victim,” the court observed.