United India Insurance Co. Ltd. vs Mangaliya And Ors. on 7 February, 2006
In a Full Bench decision of Kerala High Court in Oriental Insurance Co. Ltd. v. Sivankutty 2006 ACJ 106 (Kerala), it has been held that the liability of the insurance company in damages for third party risks continues for the entire period covered by the policy in spite of the cheque issued towards payment of premium was dishonoured and consequently the policy was cancelled by the insurance company. The remedy of the insurance company lies against the 'insured' to have the amount paid by them by way of compensation for third party risks to be got reimbursed.