Insurance Premium Remains Unpaid If Cheque Not Encashed: NCDRC

In Vaibhavi Dredging Pvt. Ltd. vs. National Insurance Co. Ltd., the National Consumer Disputes Redressal Commission, presided by Subhash Chandra and Sadhna Shanker, upheld the rejection of an insurance claim because the premium cheque was not encashed. \r

Vaibhavi Dredging's barge sank, and their insurance claim was denied as the premium wasn't deposited. The complainant argued a concluded contract existed since the cheque was given and provisional receipts were issued. \r

However, the Commission affirmed the State Commission's decision, stating no insurance contract was formed as the cheque wasn't cashed due to the lack of required documents. \r

Citing National Insurance Co. Ltd. vs. Seema Malhotra & Ors., the Commission emphasized that uncashed cheques nullify insurance obligations, dismissing the appeal.