Kerala HC: No Cancellation Notice Needed if Insurance Policy Was Cancelled Immediately Due to Non-Payment

The Kerala High Court ruled that no separate cancellation notice is needed if an insurance policy is cancelled immediately due to non-payment of premium, and the insured is aware.

In a fatal accident case, the insurer showed that the policy was cancelled on the same day and never delivered. The Court held that since the policy never reached the insured, they were deemed aware of the cancellation, and notice was unnecessary.

The court set aside the Motor Accident Claims Tribunal’s compensation award of ₹42.34 lakh against the insurer, holding the registered vehicle owner solely liable for the accident.