Motor Accident Claims Are Governed by Policy Date and Time Specified in Document : Supreme Court

The Supreme Court dismissed an insurance company’s appeal against a motor accident compensation award, reiterating that fraud allegations must be proven with evidence, not mere claims.

In the 2017 case, the Motor Accidents Claims Tribunal (MACT) awarded ₹67,50,000 and ₹8,70,000 to the claimants, a decision upheld by the Punjab and Haryana High Court.

The insurer alleged that the policy was fraudulently obtained but failed to prove non-payment of premiums before the accident.

Referring to Oriental Insurance Co. Ltd. v. Dharam Chand, the Court ruled policy coverage begins from the specified time in the policy, reaffirming the insurer’s liability.