Judgment:
Arunachalam, J.
1. Appellant M/s. United India Insurance Company Limited, Namakkal, was the second respondent in M.C.O.P. No. 14 of 1984 on the file of the Motor Accident Claims Tribunal (Sub Judge), Namakkal. Respondents 1 to 3 are the wife and children of deceased Perumal, who died in a motor accident, that took place at 6.30 a.m. On 7.11.1983 near Velayapatti on the Namakkal Trichengode Road. Deceased Perumal was proceeding on the north of the road, from west to east, on a cycle. He was knocked down and run over by the bus bearing registration No. TNY 9889, belonging to the 4th respondent. Deceased Perumal was aged about 39 years and he was employed as a wholesale fruit merchant, in Nilgiri District, earning asum of Rs. 1,200 per month. A claim was made for Rs. 1,00,000. However, the tribunal ordered a compensation of Rs. 61,500, and fixed the total liability on the appellant.
2. Mr. K.S. Narasimhan, learned Counsel appearing on behalf of the appellant, does not challenge the finding of negligence or the quantum of compensation awarded. His only challenge was regarding the liablility of the Insurance Company (appellant) to pay the compensation awarded. The argument placed before the tribunal was that the accident had taken place at 6.30 a.m. on 7.11.1983, while the insurance policy came into effect at 10.30 a.m. on the same day. This contention was rejected by the tribunal, holding that the insurance company will be liable for the loss caused on 7.11.1983, which was covered by the Insurance policy.
3. Mr. K.S. Narasimhan, learned Counsel for the appellant, fairly brought to our notice, that this contention which is the sole ground in this appeal, may no longer survive in view of the decision of the Apex Court in New India Insurance Co. v. Ram Dayal and Ors. : [1990]2SCR570 . Answering on identical question, the Supreme Court stated thus:
When a policy is taken on a particular date, its effectiveness is from the commencement of that date. The insurance policy obtained on the date of the accident became operative from the commencement of the date of insurance, i.e., from the previous mid-night, and since the accident took place on the date of the policy, the insurance became liable.
As rightly conceded by the learned Counsel for the appellant, this ground is no longer available for the appellant. Mr. P.S. Srisailam, learned Counsel for the fourth respondent then pointed out the difference in the Form of Certificate of Insurance under the Motor Vehicles Act and under the New Act. In serial No. 3 in Form A under the old Act, the wordings are 'Effective from date of commencement of insurance for the purpose of the Act'. Under Form 61 prescribed under the New Act, the wordings under serial No. 7 are effective from date and time of commencement of Insurance. It is apparent that time has been included under the New Act. The purpose for which the word 'time' has been introduced under the New Act, need not have to detain us in this appeal. Claim in the instant appeal arose under the old Act-The law laid down by the Supreme Court squarely applies, as stated earlier. On that sole ground, this appeal shall stand dismissed. No costs.