National Insurance Company

vs
Seema Malhotra

Group Members :
• Abhishek Dwivedi
• Dr.Ram Gopal Gupta
• Anish Narielwala • Nitesh Gori
• Bala NarendraKumar • Syed Mehdi
 Facts of the Case
• Mr. yash paul Malhotra entered into a contract
on dec.21, 1993 with the NIC.
• By insuring a maruti car for Rs.1,50,000/-
• He gave a cheque for Rs.4,492/- towards the
first installment of the premium on the same
day.
• Company issued a cover note as contemplated
in sec. 149 of the motor vehicles act.
• The car met with an accident on dec.31, 1993.
• Mr. Malhotra died and car was fully damaged.
• The cheque had gone for clearance and Mr.
Malhotra’s bank intimated the insurance co.
that the cheque was dishonored as there were
no funds in his account.
• On Jan.20, 1994 co. sent an intimation to Mr.
Malhotra's address stating that the policy is
cancelled with immediate effect because the
cheque has been dishonored by the bank.
• Mr. Malhotra’s Widow and children filed a
claim for the loss of Vehicle. The company
denied this and the case was taken to the
state consumer protection commission.