AIR 2000 (NOC) 10 (MAD) ::2000 A I H C 193 ::(2000) 2 ACC 34 ::(2001) 3 ACJ 2022 ::(2002) 1 TAC 601

Madras High Court

Hon'ble Judge(s): M. Karpagavinayagam , J

Insurance Act (4 of 1938) , S.64-VB— Insurance policy - Commencement of risk - Effective date - Time not mentioned in policy - Effective date would be from mid-night of that date. The assumption of the risk in an insurance policy would be only from the date of receipt of premium whether by cash or cheque. The date means 'the day' and the 'date' commences just after midnight i.e. 12.00 'O' Clock and one minute. Thus where the premium was paid on 20-5-91 at 10.00 a.m. and accident took place at 2.00 p.m. the risk is covered by the policy though it was earlier to the issue of policy. The mentioning in the Policy as 'midnight from 21-5-1991' would not disentitle the owner of the vehicle to make a plea that the real effective date of commencement of policy would only be the date of receipt of the premium. Case law discussed. (Para 23 24 25 28 30) .....