National Insurance Co. Ltd vs Balkar Ram & Ors

The Supreme Court upheld the decision of the Punjab and Haryana High Court, affirming that the insurance company was liable to pay compensation despite the dishonour of the cheque prior to the accident, as the intimation regarding the dishonour was communicated to the policy-holder after the accident. The Court referenced the judgment in United India Insurance Co. Ltd. Vs. Laxmamma & Ors. (2012) 5 SCC 234, establishing that an insurance policy remains valid until the policy-holder is notified of its cancellation. The appeal by the insurance company was dismissed, confirming joint and several liability for compensation.