Premium receipt before accident fixes insurer risk date, so later policy commencement cannot defeat liability.

Where premium was received before the accident, the insurer assumed risk from the date of receipt under Section 64-VB(2) of the Insurance Act, 1938, and could not avoid liability by relying only on a later policy commencement date. The court drew an adverse inference against the insurer because it did not examine the agent who handled the transaction, despite the agent being the best witness on whether the payment was an advance deposit or premium for the vehicle. The insurer was held liable to satisfy the award, and the challenge to the compensation order failed.

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Issues: Whether the insurer was liable to satisfy the award when the premium was received before the accident but the policy period shown in the document commenced after the accident.

Analysis: The accident occurred on 19/04/2015, while the policy document showed coverage from 21/04/2015. However, the record reflected fund transfer/payment of premium on 16/04/2015. The insurer did not examine the agent said to have handled the transaction, though he was the best witness to explain whether the amount was an advance deposit or premium received for the vehicle. In these circumstances, adverse inference was drawn against the insurer. Applying Section 64-VB(2) of the Insurance Act, 1938, the relevant date for assumption of risk was the date of receipt of premium, and the insurer could not rely only on the later commencement date printed in the policy.

Conclusion: The insurer was held liable to pay compensation, and the challenge to the award failed.

Final Conclusion: The award fastening liability on the insurer was upheld because premium receipt preceded the accident, making the insurer responsible under the governing insurance law.

Ratio Decidendi: Where premium is proved to have been received before the accident, the insurer assumes risk from that date and cannot avoid liability merely because the policy document states a later commencement date.

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