National Insurance Co. Ltd vs Smt. Sobina Iakai & Ors

The Supreme Court held that the National Insurance Co. Ltd. cannot be held liable for compensation for an accident that occurred before the renewal of the insurance policy, which was effective only from 2:00 p.m. on 20.7.1994, while the accident happened at 9:15 a.m. on the same day. The Court emphasized that the specific terms of the insurance contract dictate the liability, and since the policy was not in force at the time of the accident, the claim was rightly denied. The judgment of the Motor Accident Claims Tribunal was set aside, reinforcing the principle that liability arises only when the insurance policy is active.