National Insurance Co. Ltd. vs Smt. Raj Kumari Singh & Others on 27 April, 2012
In the Vaduguchetty case, the vehicle was insured from 21.10.1990 to 20.10.1991. It was on the basis of a cheque that was dishonored. The vehicle met with an accident on 24.11.1990 at 9:00 hours and The information of cancellation of policy was sent on the same date namely 24.11.1990 but during office hours i.e. after the accident. It is for this reason the court held that the insurance was not cancelled at the time of the accident and the insurance company was held liable to indemnify. This is not the case here.