No policy can be issued from future date without consent: SC

The Supreme Court has ruled that an insurance company cannot issue a policy from a future date without the consent of the insured.

"The insurance company cannot issue a policy unilaterally from a future date without the consent of the holder of a policy. A policy, however, which is issued from a future date must be with the consent of the holder of the policy," a Bench of Justices S B Sinha and P Sathasivam observed.



The Bench passed the ruling while setting aside a Delhi High Court judgment.



Appellant Balbir Kaur had filed a claim of compensation for the death of her husband Baljit Singh, who died after being run over by a bus. The Motor Accidents Claims Tribunal (MACT) awarded her a compensation of Rs 7.96 lakh.



However, the High Court set aside the order on the grounds that the accident had taken place on March 18, 1996, and the third party insurance contract of the bus owner commenced only from March 19 as per the cover note issued by New India Assurance Company.



Aggrieved by the ruling, the woman had filed the appeal in the apex court.