https://www.taxtmi.com/caselaws?id=105324 An insurer is not bound to honour the insured's own claim where the premium cheque is dishonoured and no valid premium is received before the loss. Section 64VB of the Insurance Act requires advance receipt of premium before risk can be assumed, and the insurance contract operates as a reciprocal promise dependent on real payment. Once the cheque fails, consideration fails and the insured cannot enforce coverage against the insurer. The position concerning third-party liability under motor insurance is treated separately from the insured's personal claim, but as between insurer and insured the policy is not enforceable without valid premium receipt. en-us Tue, 20 Feb 2001 00:00:00 +0530 Wed, 13 Apr 2022 10:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=105324 An insurer is not bound to honour the insured's own claim where the premium cheque is dishonoured and no valid premium is received before the loss. Section 64VB of the Insurance Act requires advance receipt of premium before risk can be assumed, and the insurance contract operates as a reciprocal promise dependent on real payment. Once the cheque fails, consideration fails and the insured cannot enforce coverage against the insurer. The position concerning third-party liability under motor insurance is treated separately from the insured's personal claim, but as between insurer and insured the policy is not enforceable without valid premium receipt. Case-Laws Companies Law Tue, 20 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=105324