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Judgment
M. Karpagavinayagam, J.—These two appeals, C.M.A. Nos.212 and 213 of 1992, could be disposed of by a common judgment on a
short ground. The Insurance company, the appellant herein questioning the award mainly on the ground that the cover note issued to the vehicle in
question which bears the date 3.10.87 was deliberately ante dated by the agent of the company, since the amount had been paid to the company
by the agent only on 5.10.87, i.e., subsequent to the accident and as such, the Insurance Company is not liable to pay the amount.
This ground cannot hold good, in view of the decision rendered by the Apex Court in Oriental Insurance Co Ltd v. Inderjit Karur and others
(1998-I-L.W.11), in which it has been held that once the cover note was issued on the basis of the receipt of cheque towards premium which
might be bounced later, the policy coverage commences and in New India Assurance Co. Ltd. Vs. Ram Dayal and Others, , wherein it has been
held that in the absence of any specific time mentioned in that behalf, the contract would be operative from the mid-night of the day.
In the instant case, admittedly, the accident took place on 5.10.87. According to the Insurance company, the premium amount was received
from the insured on 3.10.87 by the agent, who gave the amount to the Insurance company only on 5.10.87, i.e., on the date of the accident.
It is to be noticed that in the policy or cover note, the time is not mentioned. Under these circumstances, especially when the cover note and the
proposal form bear the date 3.10.87 as put by the agent on behalf of the Insurance company, it has to be taken that the policy coverage
commences from 3.10.87 itself.
Even assuming for the sake of argument that the amount of premium was received by the Insurance company on 5.10.87, in the absence of any
time being mentioned in the policy, it can be safely held that the policy coverage commences from 12.00 mid-night on 4/5.10.87. Therefore, there
is no merit in these appeals. In the result, the appeals are dismissed. No costs.