Order
1. By this appeal the Insurance Company is seeking to challenge the order of the High Court which has made it liable to pay the claimant even though the insurance policy was taken out on the same day as the accident. The Tribunal has held that as the policy was taken out on the same day, it shall be deemed to be effective from midnight of the preceding day. The High Court dismissed the appeal in limine.
2. The question whether the Insurance Company can be held liable under such circumstances has been considered by this Court in various decisions. In New India Assurance Co. Ltd. v. Ram Dayal (1990) 2 SCC 680 a two-Judge Bench of this Court has upheld the view of the High Court that the policy would be operative from the commencement of the date of insurance i.e from the previous midnight and that the Insurance Company would thus be liable. However, it must be noted that in this case the policy did not mention that time at which it was issued.
3. The question again came up for consideration in National Insurance Co. Ltd. v. Jikubhai Nathuji Dabhi (1997) 1 SCC 66. Reliance was placed on the abovementioned judgments. However, a three-Judge Bench of this Court noted that the Tribunal had recorded, as a fact, that the policy had come into force at 4.00 p.m whereas the accident had taken place at 11.40 a.m This Court held that in view of the special contract and in view of the fact that the accident had occurred earlier, the insurance coverage would not enable the claimant to seek recovery from the Insurance Company.
4. The question again arose in Oriental Insurance Co. Ltd. v. Sunita Rathi (1998) 1 SCC 365 and again Ram Dayal case (1990) 2 SCC 680 was relied upon. This Court distinguished Ram Dayal case (1990) 2 SCC 680 and held that as the cover note itself showed that the effective date and time of the policy was after the accident, the Insurance Company would not be liable.
5. In the present case, the cover note shows that the date of issue of policy is 9-6-1989 and the time of issue is 4.40 p.m Admittedly, the accident took place at 11.30 a.m It has been urged that even though the policy shows that it was issued at 4.40 p.m, the policy does not mention that it will take effect from that time. It is urged that as the policy does not mention that it will take effect from 4.40 p.m the ratio of Ram Dayal case (1990) 2 SCC 680 should be applied and it must be held that the policy is effective from midnight of the earlier date.
6. We are unable to accept this submission. When the cover note mentions the date of issue of the policy as 9-6-1989 and the time as 4.40 p.m it necessarily means that the effective date of issue and time of issue is as mentioned on the cover note. The cover note having been issued after the accident it will not be open to the claimant to make a claim on the Insurance Company.
7. This Court on 12-7-1995 while issuing notice had clarified that the amount was to be deposited by the Insurance Company and could be withdrawn by the claimants. The Insurance Company has deposited the amount. The same order also clarified that the question would really be between the Insurance Company and the owner of the vehicle. As clarified in that order, the Insurance Company will not be entitled to recover back the amount from the claimant. It may, however, do so from the owner on the basis of this judgment. The appeal stands disposed of accordingly. No order as to costs.