NATIONAL INSURANCE CO. LTD. vs SOBINA IAKAI .

The Supreme Court ruled that the National Insurance Co. Ltd. cannot be held liable for compensation for an accident that occurred before the renewal of the insurance policy. The policy was renewed on 20.7.1994 at 2:00 p.m., while the accident took place at 9:15 a.m. on the same day, thus the insurance coverage was not in effect at the time of the incident. The Court emphasized that liability arises only when the policy is active, affirming the principle that an insurance company is not liable for events occurring outside the policy period.