Despite the cancellation of the insurance policy, the Bombay High Court holds the insurance company liable under the ‘Pay and Recover’ principle if the offending vehicle’s owner did not receive proper intimation

Case: HDFC ERGO General Insurance Company Ltd. v. Nayajoddin Nijamuddin and Ors.

Coram: Justice Kishore C Sant

Case No.: First Appeal No. 2929 of 2019

Court Observation: “the appellant could not produce evidence to show that the intimation of cancellation of policy was received by the insured prior to the date of accident. It is the case of the appellant that the intimation was sent to the insured. However, said intimation was not served for want of complete address. The fact remains that the intimation of cancellation of policy was not received by the insured”

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