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Head Note

Motor Vehicles Act,1988  - Section 147 (2) , Section 149 , Section 157

Workmen's Compensation Act, 1923 - Sections 30 and 4 - Appeal - Motor accident - Contract of insurance - Liability of Insurance Company - Owner of vehicle insured died in 1991 - Policy renewed in name of original owner - Plea that contract of insurance void ab initio and Insurance Company had no statutory liability - In view of Section 157 of the Act, certificate of insurance and policy shall be deemed to have been transferred in favour of person to whom motor vehicle is transferred with effect from date of transfer - Despite knowledge of death of original owner, company accepting premium - Contract by necessary implication arise - Doctrine of "acceptance sub-silentio" applicable - Once a valid contract is entered into, contract itself is not valid unless it is shown that in obtaining said contract a fraud was practiced - Neither particulars of fraud pleaded nor any witness examined - No case of fraud made out - Insurance Company liable to indemnify the insured.

Topic(s)-Motor Accident Claim , Contract of Insurance , Liability of Insurance Company

Important Decision(s)- 

• Despite knowledge of death of original owner, company accepting premium hence contract by necessary implication arise.
• Once a valid contract is entered into, contract itself is not valid unless it is shown that in obtaining said contract a fraud was practiced.