DEOKAR EXPORTS PVT. LTD. vs NEW INDIA ASSURANCE COMPANY LTD.

The Supreme Court addressed the issue of insurance policy coverage, specifically regarding the prospective nature of insurance contracts. It held that unless mutually agreed otherwise, an insurance policy is effective from the date of issuance, as per the appellant's contention. The Court found that the High Court's ruling, which deemed the policy to cover a period from 26.8.1988 to 25.8.1989, was erroneous, and clarified that the policy should be treated as covering the risk from 30.6.1989 for one year, thereby allowing the appellant's claim for the fire accident on 10.2.1990 to proceed.