Claimant/Plaintiff– Oriental Insurance Company Limited
Defendant– Asha Paul
Judgement Date- December 14, 1995
Jurisdiction- J&K High Court
Hon’ble Judge– Justice B.A. Nazki
Area- Law of Contracts (Indemnity)
Facts: The complainant in the case had insured his transport company with the premises and all its assets and stocks with the appellant insurance company. He had paid the premium of Rs. 4718/- against proper receipt issued to him by a recognized agent of the insurance company. His insurance claim post gutting of his business by fire was denied by the insurance company on the ground that they had not received any premium amount till the date of fire and the agent had turned in the premium only after the fire accident. Asha Paul had then filed a complaint with the Consumer Forum, which had ruled in her favour and ordered the insurance company to pay the claim. The insurance company had then appealed this decision in the High Court of Jammu and Kashmir.
Issue Before The Court: Whether an insurance company is liable to indemnify the insured if former’s agent received the premium amount but failed to turn it in to the company before the occurrence?
Decision: The court had thus dismissed the appeal filed by the insurance company and upheld the decision of the Consumer Forum and held that where an authorized agent of the insurance company collected the premium amount from the assured against proper receipt, the liability of the insurer began from that moment though the agent deposited the collection with the company after the occurrence.
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