NATIONAL INSURANCE CO. LTD. vs ABHAYSING PRATAPSING WAGHELA .

The Supreme Court addressed the issue of whether a dishonoured cheque affects the validity of an insurance contract under Section 64VB of the Insurance Act. The Court held that despite the dishonour of the cheque, the acceptance of premium in cash subsequently validated the insurance contract, as a cover note had been issued. The Court upheld the decisions of the Motor Vehicle Accident Claims Tribunal and the High Court, confirming the insurer's obligation to reimburse the claim.