Bounce Of Cheque Issued For Insurance Premium Is Breach Of Promise, Insurance Company Not Bound To Indemnify Owner Of Offending Vehicle: Bombay HC [Read Judgment]

The Bombay High Court has held that when a cheque issued towards payment of insurance premium bounces, an insurance company is not bound to indemnify the owner of the insured vehicle (in this case the offending vehicle) and has a right to recover compensation awarded in case of motor accidents from the owner of the offending vehicle. Justice SV Kotwal of the Aurangabad bench was hearing a...