National Insurance Co. Ltd vs Abhaysing Pratapsing Waghela & Ors

The Supreme Court addressed the implications of a dishonoured cheque in relation to an insurance contract under Section 64VB of the Insurance Act. The Court held that the insurance contract is valid only if the premium payment is honoured, and since the cheque was dishonoured, the insurer was not liable to compensate for the accident. The Court affirmed the decisions of the Motor Vehicle Accident Claims Tribunal and the High Court, which found that a cover note had been issued, thus obligating the insurer to reimburse the claim despite the dishonoured cheque.