The New India Assurance Co. Ltd vs Smt. Afroz Bi & Ors

The Supreme Court held that the liability of an insurance company is determined by the period of the insurance policy in effect at the time of the accident, as per the Motor Vehicles Act. The Court found that the insurance policy issued by the appellant covered a period after the accident date, thus the appellant was not liable for compensation. The High Court's ruling that the bouncing of a cheque does not affect liability was deemed irrelevant since the policy was not in force at the time of the incident, leading to the appeal being allowed in favor of the appellant.