Authority: High Court of Jharkhand at Ranchi
Order Date: 06 November 2026
Case Overview
- Parties: Oriental Insurance Company Limited (appellant) vs. Ghansi Ram Mahato, Bundiya Devi, Rashmi Ranjan Kumar, Ram Pravesh Singh, Sri Ram Roadways, Ajit Munda, IFFCO‑TOKIO General Insurance Co. Ltd.
- Background: The appeal challenges the M.A.C.T, Bokaro award dated 19‑June‑2014 that held the insurer liable for Rs 2,06,250 to the claimants.
- Accident: Occurred on 04‑Nov‑2011. A third‑party motor insurance policy was issued on 11‑Apr‑2011, effective 12‑Apr‑2011 to 11‑Apr‑2012.
- Premium payment: Cheque dated 11‑Apr‑2011 issued by the vehicle owner (Rashmi Ranjan Kumar) was dishonoured; the insurer was informed of dishonour on 25‑Apr‑2011. No clear communication of policy cancellation to the owner or transport authorities was established.
Final Outcome
- The Court partially allows the appeal, modifying the award. Oriental Insurance must pay Rs 2,06,250 plus interest to the claimants.
- The insurer is entitled to recover the paid amount from the vehicle owner (the third respondent) in accordance with law.
- No order for costs is made. All pending interim applications are disposed of.
Topics: Insurance Liability, Court Judgment