Kerala High Court
The New India Assurance Company Ltd vs Nusaifa Thasni on 1 August, 2025
M.A.C.A.No.199 of 2020
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2025:KER:57075
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MRS. JUSTICE C.S. SUDHA
FRIDAY, THE 1ST DAY OF AUGUST 2025 / 10TH SRAVANA, 1947
MACA NO. 199 OF 2020
AGAINST THE AWARD DATED 06/02/2019 IN OPMV NO.786 OF
2015 ON THE FILE OF THE MOTOR ACCIDENT CLAIMS TRIBUNAL,
MANJERI.
APPELLANT/2ND RESPONDENT:
THE NEW INDIA ASSURANCE COMPANY LTD.
BRANCH OFFICE 1ST FLOOR,V.V.COMPLEX,CALICUT ROAD,
PERINTHALMANNA,PIN-679322, REPRESENTED BY ITS
ASSISTANT MANAGER, LEKHA VIJAYAN.
BY ADV SHRI.LAL K.JOSEPH
RESPONDENTS/PETITIONER, 1ST RESPONDENT:
1 NUSAIFA THASNI, AGED 18 YEARS,
D/O.K.V.MOHAMMED MUSTHAFA, KOORIYATTU
VATTAPARAMBIL HOUSE, NENMENI AMSOM,
THACHINGANADAM.P.O, MALAPPURAM DISTRICT-679325.
2 NARAYANAN.C,
S/O.KUTTY AYYAPPAN.C, CHERIKKAMIL HOUSE,
MELATTUR AMSOM, CHEMMANIYODE.P.O,
PATTIKKAD VIA,MALAPPURAM DISTRICT-679325.
BY ADVS.
SHRI.P.VENUGOPAL
SRI.P.SAMSUDIN
SRI.M.ANUROOP
THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY
HEARD ON 30/07/2025, THE COURT ON 01/08/2025 DELIVERED THE
FOLLOWING:
M.A.C.A.No.199 of 2020
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2025:KER:57075
C.S.SUDHA, J.
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M.A.C.A.No.199 of 2020
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Dated this the 1st day of August 2025
JUDGMENT
This appeal has been filed under Section 173 of the Motor Vehicles Act, 1988 (the Act) by the second respondent/insurer in O.P.(MV) No.786/2015 on the file of the Motor Accidents Claims Tribunal, Manjeri (the Tribunal), aggrieved by the Award dated 06/02/2019. The respondents herein are the claim petitioner and the first respondent in the petition. In this appeal, the parties and the documents will be referred to as described in the original petition.
2. According to the claim petitioner, on 05/01/2015 at about 08:30 a.m., while she was walking along the side of the road at the place by name Pattikkad, car bearing registration no.KL-53/A-4624 driven by the first respondent knocked her down, as a result of which she sustained grievous injuries.
M.A.C.A.No.199 of 20203
2025:KER:57075
3. The first respondent-owner cum driver of the offending vehicle did not file written statement.
4. The second respondent-insurer filed written statement contending that the vehicle had no valid insurance policy at the time of the accident. The averments regarding the injuries and treatment availed by the petitioner were disputed. The amount claimed was contended to be exorbitant.
5. Before the Tribunal, no oral evidence was adduced by the claim petitioner. Exts.A1 to A6 series were marked on the side of the claim petitioner. RWs. 1 and 2 were examined and Exts.B1 to B4 series were marked on the side of the second respondent. Ext.X1 was marked as third party document.
6. The Tribunal on consideration of the oral and documentary evidence and after hearing both sides, found negligence on the part of the first respondent-driver of the offending vehicle resulting in the incident and hence awarded an amount of ₹1,63,000/- together with interest @ 9% per annum from the date of the petition till realisation along with proportionate costs. Aggrieved by the Award, the second M.A.C.A.No.199 of 2020 4 2025:KER:57075 respondent/insurer has come up in appeal.
7. The only point that arises for consideration in this appeal is whether there is any infirmity in the findings of the Tribunal calling for an interference by this Court.
8. Heard both sides.
9. It was submitted by the learned counsel for the second respondent/insurer that there was no valid insurance policy at the time of the accident. Ext.B1 was issued only on 05/01/2015 at 12:03:49 p.m. whereas the accident took place on the same day at 08:30 a.m. This would make it clear that there was no policy on the date of the incident. The policy was obtained suppressing the occurrence of the accident, which is suppression of a material fact. In the appeal memorandum, referring to the dictum in Mithoolal Naik v. Life Insurance Corporation of India, AIR 1962 SC 814 it is contended that suppression of material facts while issuing a policy amounts to fraud in obtaining the policy and hence the same vitiates the policy.
9.1. Per contra, it was submitted by the learned counsel for the claim petitioner as well as the first M.A.C.A.No.199 of 2020 5 2025:KER:57075 respondent/owner cum driver that Ext.B1 policy itself would show that the policy commenced from 12:00:01 a.m. on 05/01/2015. Merely because the document was generated at 12:40:02 hrs. only, would not mean there was no policy at the time of the accident. In support of the argument, reference was made to the dictum of the Apex Court in New India Assurance Company Ltd. v. Ram Dayal, 1990 KHC 177 : (1990) 2 SCC 680 and judgment of a Single Bench of this Court in Shaji v. Varghese, 2025 KLT OnLine 2523.
10. In the written statement filed by the third respondent/insurer, it is true that the terms fraud or misrepresentation have not been specifically stated. However, the pleadings read thus -
"(1) This respondent specifically denies the insurance coverage to Maruthi Car KL-53/A-4624 at 8-30 AM on 05-01-2015, which is the time of accident in this case. This respondent submits that only at 12:03:49 PM on 05-01-2015 this respondent issued a policy to the vehicle KL-53/A-4624, which means there was no policy cover to M.A.C.A.No.199 of 2020 6 2025:KER:57075 the vehicle KL-53/A-4624 at 8-30 AM on 05-01-2015.
Previous policy of the vehicle expired on 28/4/14.
2. Date of accident in this case is on 05-01-2015 at 8-30 AM. Policy in this case is also issued on 05-01-2015 and in the 1st page of the Final Report filed by Melatoor Police in Crime No.23/15, offences shown are U/s 279, 338 IPC and u/s 146 r/w 196 of the Motor Vehicles Act and in Vehicle Releasing Kacheet to Respondent No.1 which is dated 19-01-2015 also u/s 146 r/w 196 of the Motor Vehicles Act is there which shows that there was no insurance policy to the vehicle at the time of the accident in this case."
10.1. To establish the aforesaid contention, the second respondent examined RW1 and RW2. RW1, the then Divisional Manager, deposed that in case a policy is renewed before its expiry, the renewal will then take effect from the midnight of the day on which the policy expires. In the case on hand, Ext.B1 policy was issued on 05/01/2015 at 12:40:02 p.m. only, which entry is Ext.B1(a). Though it was taken only in the afternoon, since the policy is a system generated one, the time would M.A.C.A.No.199 of 2020 7 2025:KER:57075 automatically read as midnight of the day on which the policy was issued. In Ext.B1, time of commencement of policy issued ought to have been manually corrected. But due to an omission on the part of the agent, which was not reported to the insurer, Ext.B1 came to be issued with starting period of the policy stated to be from 12:00:01 a.m. on 05/01/2015. As Ext.B1 policy was issued only in the afternoon which was after the accident occurred, there was no valid insurance at the relevant time. In the cross examination conducted on behalf of the claim petitioner, RW1 deposed that he does not know whether the owner/insured had entrusted the premium to the agent before the expiry of the policy. RW2, the agent who renewed the policy deposed that it was on the basis of telephonic instructions he received from the first respondent/owner, Ext.B1 policy came to be issued. According to RW2, the premium amount had not been given to him by the first respondent/insured when the policy was issued on 05/01/2015 in the afternoon.
11. An interesting aspect that needs to be noted is that pursuant to Ext.B3 final report/charge sheet alleging M.A.C.A.No.199 of 2020 8 2025:KER:57075 commission of offences punishable under Sections 279, 338 IPC and Section 146 read with Section 196 of the M.V. Act, the first respondent herein, namely, the accused in the aforesaid crime appeared before the jurisdictional magistrate and pleaded guilty of the offences alleged against him. The relevant portion of the judgment dated 19/08/2016 in C.C.No.270/2015 of the Judicial First Class Magistrate -II, Perinthalmanna reads thus -
" In the result, the accused is found guilty u/s.279 and 338 IPC and convicted thereunder. He is sentenced to pay a fine of Rs. 750/- u/s. 279 IPC, and Rs.750 u/s. 338 IPC & Rs.750/- u/s.146 r/w 186 of the MV Act. IDSI for 22 days."
(Emphasis supplied)
12. It was submitted by the learned counsel for the first respondent/owner that the judgment of a criminal court is not binding on a civil court or the Tribunal and therefore, the same is of no consequence. After having appeared before the jurisdictional magistrate and pleaded guilty to the offences alleged against him, including the offence under Section 146 read with 186 of the Act, which is absence of an insurance policy at the M.A.C.A.No.199 of 2020 9 2025:KER:57075 relevant time, the first respondent-owner cannot be heard to advance such an argument before this Court.
13. Be that as it may, a perusal of Ext.B1 shows that the period of cover of the policy is from 05/01/2015, 12:00:01 a.m. to 04/01/2016 11:59:59 p.m. Ext.B1(a) entry shows that the document was generated by RW2, the agent, on 05/01/2015 at 12:40:02 hrs. which is apparently after the accident which took place at 08:30 a.m. on the very same day. Here, I refer to the dictum of the Apex Court in Ram Dayal (Supra), in which case the insurance policy was valid till 31/08/1984. Though the policy could be renewed, instead of obtaining a renewal, a fresh insurance was taken from 28/09/1984, which was on the date of the accident. The insurer repudiated its liability by maintaining that the policy had been taken after the accident and therefore it had no liability to meet the Award of compensation against the owner. The Tribunal accepted the stand of the insurer and rejected the claim of the insured. In appeal, the High Court took the view that the insurance policy obtained on the date of the accident became operative from the commencement of the date of M.A.C.A.No.199 of 2020 10 2025:KER:57075 insurance, that is, from the previous midnight and as the accident had taken place on the date of the policy, the insurer would become liable. In appeal, the Apex Court held that when a policy is taken on a particular date, its effectiveness is from the commencement of the date and therefore the High Court was right in holding that the insurer was liable in terms of the Act to meet the liability of the owner under the Award.
In the case on hand, it appears that the first respondent/insured took the policy immediately after the incident realising the consequences. In the light of the dictum in Ram Dayal (Supra), it can only be held that the challenge by insurer cannot succeed. In the result, the appeal is dismissed.
Interlocutory applications, if any pending, shall stand closed.
Sd/-
C.S.SUDHA JUDGE Jms