#Premium Payment

Karnataka High Court ruled that an insurance policy remains valid under Section 64VB of the Insurance Act if the premium was paid in cash, even if a subsequent cheque was dishonoured. The Court relied on United India Insurance v. Lakshmamma and enhanced compensation from ₹86.15 lakh to ₹1.92 crore with 6% interest, reinforcing insurer liability in motor accident claims despite payment discrepancies.

Punjab & Haryana High Court rules that motor insurance coverage commences upon premium payment, even if the policy document reflects a later effective date. The ruling holds insurers liable for accidents occurring on the premium payment date, overturning the Tribunal’s exoneration of the insurer in a claim where the premium was received on the accident date.