Article 44 (Article 86 of the Act of 1908):
(a) The period of limitation for a suit on a policy of insurance when the sum insured is payable after proof of the death has been given to or received by the insurers is three years and the starting point of limitation is the date of the death of the deceased, or where the claim on the policy is denied, either partly or wholly, the date of such denial.
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ADVERTISEMENTS:
(b) The period of limitation for a suit on a policy of insurance when the sum insured is payable after proof of the loss has been given to or received by the insurers is three years and the date of the occurrence causing the loss, or where the claim on the policy is denied, either partly or wholly, the date of such denial.
In Mani Laxmi Patel v. The Hindusthan Cooperative Insurance Society, (AIR 1962 Cal. 625), it has been held that clause (a) of Art. 44 relates to suits on life policies brought by persons entitled to the benefit of the policy, whereas clause (b) covers suits by the assured on in the right of the assured against the insurance company. It has no application to suits by third parties against the insurance company.
In Bhailal v. Md. Quarban, (AIR 1964 Patna 372), it has been held that Article 44 is not attracted to a suit for compensation for injuries sustained in a bus accident brought against the bus owner, the driver and the insurance company which has covered third party risk. Under the Article 44, alternative starting point of limitation has been provided. Under Art. 44(b) of the Limitation Act, 1963, three years period is provided for filing a suit to recover damages sustained on account of any loss under an insurance policy. The time starts running against the plaintiff either on the date of occurrence of the loss or the date on which the claim is denied by the insurance company.