Avanti, took out motor car insurance from Healthy Trip Insurance Company. A cheque was issued under a contract of insurance of motorcar by the insured for the payment of premium of the policy. However, the cheque was dis

The facts in the given case are similar to the case of National Insurance Co. Ltd. vs. Seema Malhotra [2001(2) SCALE 140] . Applying the principles envisaged under Sections 51, 52 and 54 of the Indian Contract Act, 1872, relating to reciprocal promises, an insurer is not required to perform its part of the promise when the other party (the insured) fails to perform their part. In this case, the insured failed to pay the premium as promised, and the cheque issued for the premium was dishonoured. Therefore, the contract of insurance cannot be said to have been performed by the insured.