Liability of the Insurer if policy is cancelled before the accident took place –Whether insurer liable?–Held, “no”–Source–Manupatra–case decided by Supreme Court in 2007

Constitution of India – Article 142–Motor Vehicles Act, 1988–Sections 147, 149, 166 and 168–Insurance Act, 1938–Section 64VB–Compensation–Liability of insurer–Premium paid by cheque–But cheque dishonoured–Insurance policy cancelled–Intimation given to owner of vehicle of cancellation–Accident occurred after cancellation resulting in death–Whether insurer liable?–Held, “no”–However, as appellant hailing from lowest strata of society–Direction under Article 142 given to insurer to pay amount of compensation to appellants–And recover same from owner of vehicle particularly when no appeal preferred by owner.

Ratio Decidendi:

“If the contract of insurance has been cancelled and all concerned have been intimated, the insurance company would not be liable to satisfy the claim.”

Dedappa V National Insurance