Transfer Of Insurance Policy Must Be Within 14 Days Of Transferring Ownership Of Vehicle : Uttarakhand State Commission
The State Consumer Disputes Redressal Commission, Uttarakhand bench comprising Ms Kumkum Rani (President) and Mr B.S. Manral (Member), allowed an appeal filed by National Insurance Company Limited. The allegations against the Insurance Company involved the repudiation of an accidental claim based on the absence of the Complainant's name in the insurance policy. The bench held that...
The State Consumer Disputes Redressal Commission, Uttarakhand bench comprising Ms Kumkum Rani (President) and Mr B.S. Manral (Member), allowed an appeal filed by National Insurance Company Limited. The allegations against the Insurance Company involved the repudiation of an accidental claim based on the absence of the Complainant's name in the insurance policy. The bench held that the Complainant failed to transfer the insurance policy into his name within 14 days of transferring the vehicle's ownership. Therefore, he was not entitled to the insurance amount.
Brief Facts:
The Complainant bought a truck on 03.05.2010, which was insured by National Insurance Company Limited (“Insurance Company”) from 15.03.2012 to 14.03.2013. Due to a mistake, the Complainant's name was wrongly mentioned. The truck got involved in an accident on 03.09.2012, and a repair estimate of Rs. 3,14,767/- was submitted to the Insurance Company. However, the Insurance Company repudiated the claim. The Complainant sent a legal notice to the Insurance Company on 03.10.2012. However, no reply was given. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Haridwar (“District Commission”).
The Insurance Company stated that the vehicle was never insured by the Complainant and thus, he was not entitled to the payment. The District Commission, after considering the evidence, held the Insurance Company liable to pay Rs. 3,14,767/- along with Rs. 5,000/- as compensation. Dissatisfied by the order of the District Commission, the Complainant filed an appeal in the State Consumer Disputes Redressal Commission, Uttarakhand (“State Commission”). The Complainant did not appear before the State Commission. Therefore, he was proceeded against ex-parte.
Observations by the Commission:
The State Commission noted discrepancies between the insured name in the insurance policy and the complainant's name.
The State Commission noted that the name in the insurance policy was not of the Complainant's. Rather it was in the name of someone from whom the Complainant bought the truck. However, the Complainant failed to provide a registration certificate to confirm the transfer of ownership of the truck to him. Additionally, no evidence was submitted to show when the Complainant informed the Insurance Company about the transfer and requested a change in the insurance certificate.
Consequently, it was observed that the Complainant failed to adhere to Section 157(2) of the Motor Vehicles Act, 1988, which mandates the transfer of insurance within 14 days of the transfer of the vehicle's ownership. It was held that the District Commission erred in its decision by overlooking this important provision.
In light of these findings, the State Commission allowed the appeal and set aside the order pronounced by the District Commission.
Case Title: Deputy Manager, National Insurance Company Limited vs Sh, Hasim
Case No.: First Appeal No. 220/2018
Advocate for the Appellant (Insurance Company): Sh, Sudhanshu Dwivedi
Advocate for the Respondent/Original Complainant: None