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Head Note

Motor Vehicles Act,1988  - Section 147 , Section 149

Compensation - Liability to pay - Third party cheques issued towards payment of insurance premium - Appellant issuing cover note by mistake - Thereafter respondent No. 2 called upon to pay amount of premium - Amount not paid and cover note returned by respondent no. 2 - Vehicle met with accident - Respondent No 1 sustained injuries - Claim against insurer dismissed as there was no valid policy - High Court however holding the insurer liable - No privity of contract between appellant and second respondent as such question of enforcing purported contract does not arise - Insurance company not liable to pay compensation - However in view of facts insurer directed to make payment of awarded amount with liberty to recover from owner of vehicle - Appeal allowed.

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