Mohammed Aslam @ Aslam vs Kumar .B on 8 December, 2015
The learned counsel for petitioner has also relied upon
Judgment of Hon'ble Delhi High court reported in (Usha
Aggarwal Vs. Parmod Kumar Gupta and others) 2014 ACJ
2590, in which the cheque issued towards premium was
dishonoured and insurance company informed the insured
and cancelled the cover note much before the date of
accident. In the said decision, Hon'ble High Court has held
that, as per Section 147(5) and 149(1) of Motor Vehicles Act,
the liability of insurance company in damages to third party
risks continues for the entire period covered by the policy in
spite of cheque issued towards payment of premium being
dishonoured and consequent cancellation of policy. The
insurance company issued the policy upon receipt of cheque
towards premium in contravention of the provision of Section
64-VB of the Insurance Act and policy of insurance being
public interest concept prevails over the interest of the
insurance company and insurance company directed to pay
SCCH-11 25 MVC.NO.2932/2014
compensation and then recover the same from owner of
offending vehicle.