First pay, then recover : Bombay HC to insurance company on the failure to intimate cancellation of policy to the insurer
TITLE : HDFC ERGO General Insurance Company Ltd v Nayajoddin Nijamuddin and Ors
CITATION : First Appeal No. 2929 of 2019
CORAM : Hon’ble Justice Kishore C. Sant
DATE: 1st December, 2023
INTRODUCTION :
This appeal has been filed by the insurance company against the judgement of insurance claims to be granted by the Motor Accident Claims Tribunal.
FACTS :
The insurance company, appellant has opposed the claim of insurance on the ground of breach of terms and conditions of the policy. An autorickshaw met with an accident and the passenger succumbed to his injuries. An compensation of Rupees 25 lakhs was claimed against the owner of the rickshaw and the insure company. An insurance premium was paid of Rs.35,430 through cheque after the accident which later bounced as the account of insurance was closed and cancelled the insurance policy. The tribunal held that the policy was not valid and legal as there was no intimation of cancellation of policy.
COURT’S ANALYSIS
The issue infront of the court was whether there was sufficient notice of cancellation of insurance policy by the company to the insurer and whether third party can claim insurance. The court held that the intimation of cancellation was not delivered to the insurer as it was sent to an incomplete address. The court found that there is no reason to interfere with the findings of the tribunal which held that a third party is entitled to compensation on beneficial legislation grounds.
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Written by- Sanjana Ravichandran