NATIONAL INSURANCE CO. LTD. vs SEEMA MALHOTRA . — C.A. No. 1350/2001

Case Summary: National Insurance Co. Ltd. v. Seema Malhotra (2001) The Supreme Court held that an insurance company is not liable to the insured when the premium cheque is dishonoured, as the insurance contract consists of reciprocal promises requiring payment of premium before coverage attaches. The Court reasoned that under the Indian Contract Act's provisions on reciprocal promises, when the insured fails to pay the promised premium, the insurer need not perform its obligation to indemnify, and the insured cannot claim compensation even for accidents occurring during the policy period. This case analysis is maintained by casestatus.in based on publicly available court records.