NEW INDIA ASSURANCE CO. LTD. vs RAM DAYAL AND ORS.

The Supreme Court upheld the Punjab & Haryana High Court's decision that the insurer is liable for compensation under the Motor Vehicles Act, 1939, despite the insurer's claim that the policy was taken after the accident. The Court established that an insurance policy taken on the date of an accident is effective from the commencement of that day, thus making the insurer liable. The appeals were dismissed with no order for costs.