ORIENTAL INSURANCE CO. LTD. vs DHARAM CHAND .

The Supreme Court held that the insurance coverage commenced at the time the premium cheque was received by the insurance company, which was at 4:00 pm on May 7, 1998, prior to the motor accident that occurred at 8:30 pm the same day. The Court affirmed the decisions of both the Tribunal and the High Court, which had held the insurance company liable for compensation despite the cover note stating a later commencement date. The appeal by the insurance company was dismissed, reinforcing the principle that coverage begins upon receipt of the premium.