United India Insurance Appeal Dismissed

Authority: High Court of Chhattisgarh, Bilaspur (Single Bench)

Order Date: 06 July 2026

Appellant: United India Insurance Company Limited (through its Branch Manager, Branch Office – Shanti Bhawan Albert Ekka Chowk, Ranchi) filed an appeal under Section 173 of the Motor Vehicles Act, 1988 against the award dated 28 January 2019 passed by the Additional Motor Accident Claims Tribunal, Gharghora, District Raigarh, Claim Case No.36/2018, which allowed the claimants and ordered the insurer to pay compensation.
Respondents: Savita Goswami (widow of Rakesh Goswami) and her sons Mukesh and Vishvjeet (claimants); also non‑applicants Vakeel Singh and Vikram Kumar Singh were listed.
Counsel: For the appellant – Mr. Dashrath Gupta; for respondent No.4 – Mr. Anil Kumar Chouhan.
Appellant's Argument: The case involved dishonour of a cheque; the appellant contended that the principle of "pay and recover" should not be imposed on the insurer.
Tribunal's Finding: The Claims Tribunal applied the "pay and recover" principle and held United India Insurance liable to pay the compensation awarded to the claimants.

The bench, after hearing counsel, referred to the Supreme Court judgment in New India Assurance Co. Ltd. v. Rula & Others (2000) which held that cancellation of an insurance policy due to premium non‑payment (cheque dishonour) does not affect rights accrued in favour of a third party at the time of the accident.
Applying this precedent, the court found no merit in the insurer’s contention and concluded that the tribunal correctly applied the "pay and recover" principle.

The appeal is dismissed. The award of the Additional Motor Accident Claims Tribunal dated 28 January 2019 stands, and United India Insurance Company Limited remains liable to pay the compensation ordered.

Topics: Insurance Law, Motor Accident Claims, Court Judgment