NEW INDIA ASSURANCE CO.LTD. vs RULA

The Supreme Court held that under Section 64-VB of the Insurance Act, 1938, an insurance policy is valid even if the premium is not paid in advance, as the insurer can waive such a condition. The court emphasized that a contract of insurance is formed by offer and acceptance, and the dishonor of a cheque does not automatically invalidate the contract if the insurer has not expressly canceled the policy. The appeals against the Motor Accident Claims Tribunal's awards were dismissed, affirming the compensation granted to the claimants.