DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD

Dated this the 30^th day of July 2013 

Present: Smt.Seena.H, President

            : Smt.Preetha.G.Nair,   Member

            : Smt.Bhanumathi.A.K, Member                  Date of Filing : 28/01/2013

 

Thankappan,

S/o.Gopalan,

Kalaparambil Veedu,

Panangora,

Kayaradi (PO),

Palakkad                                            -                  Complainant

(By Adv.Joy Kanhirathinchalil)
 

        Vs
 

Branch Manager,

Bajaj Allianz General

       Insurance Co.Ltd.

Mangalam Towers, T.B.Road,

Palakkad.                                           -                  Opposite party

(By Adv.Ullas Sudhakaran)

 

Order by Smt.Bhanumthi.A.K. Member

 

The complainant has purchased a TATA INDICA car bearing Registration No.KL-9-N-9235 from one Mr.Vijayan, S/o.Appu, Manjapra House, Vattekkad Post, Palakkad. On 4/11/11 the RC was transferred in the name of the complainant. The previous owner has availed a package policy numbered OG-12-1513-1801-00000131 from the opposite party for a period from 7/5/2011 to 6/5/12.

On 17/2/12 the above mentioned car was met with an accident and sustained heavy damages. The fact was informed to the opposite party and opposite party deputed an insurance surveyor named Mr.Babu and submitted report.

The complainant has spent an amount of Rs.1,19,445/- for repairing the car. Opposite party is liable to pay the said amount. On 9/11/12 the previous owner of the said vehicle has given a concerned letter stating no objection in receiving compensation amount by the complainant from the opposite party. The complainant applied for claim amount with  all relevant documents i.e. RC book, driving license of the driver, insurance policy etc. The opposite party has not given the amount. On 8/11/12 the complainant sent a lawyer notice to the opposite party demanding compensation. Not given any reply. The act of opposite party amounts to deficiency of service on their part. So the complainant prays for an order directing the opposite party to allow the claim and pay an amount of Rs.1,19,445/- with 12% interest alongwith Rs.15,000/- as compensation and Rs.5,000/- as cost of the proceedings.

Opposite party entered appearance and filed version with the following:

Opposite party admits the fact that a package policy numbered OG-12-1513-1801-00000131 issued by this opposite party for the period from 7/5/11 to 6/5/12 was availed by one Mr.Vijayan for his vehicle bearing registration number KL-09-N-9235.

The alleged accident was reported to opposite party and deputed an independent surveyor for assessing the loss and the said surveyor had inspected the vehicle and prepared a report on 22/2/12. On perusal  of RC and Policy copy issued by the opposite party the surveyor noticed that the insured is one Mr.Vijayan who was the original registered owner of the car bearing registration No.KL-09-N-9235 and no endorsement is made in the said policy regarding transfer of ownership. As there is no insurable interest, the independent surveyor provided a final survey report on 14/3/12 to the opposite party recommending for repudiation of claim. On 15/3/12 the opposite party sent a notice to the complainant for intimating the repudiation of the claim. Opposite party is not liable to pay the amount Rs.1,19,445/- spent by the complainant. The opposite party is not aware of any consent letter provided to the complainant by the  policy holder Mr.Vijayan to the effect that he has no objection in receiving the compensation from the opposite party by the complainant. Opposite party sent a reply notice to the complainant on 4/2/12.

 

The claim put forward by the complainant was rightly repudiated as no intimation regarding transfer as required under Section 157 of Motor Vehicles Act was provided by the complainant to the opposite party. As per General Regulation 17 of Indian Motor Tariff enacted as per the provisions of the Insurance Act, 1938, “In the case of transfer of a vehicle, the transferee shall apply within 14 days from the date of transfer in writing under recorded delivery to the insurer who has insured the vehicle, with the details of registration of vehicle and the number and date of policy, so that the insurer may make necessary changes in his record and issue fresh certificate of insurance”. The complainant failed to comply the above said mandatory provisions and the same amounts to breach of law as well as violation of terms and conditions of the policy. The contract of insurance is between the opposite party and the original insured, Policy was issued in the name of Mr.Vijayan and there is no privity of contract between the complainant and the opposite party and hence the complainant cannot legally claim any amount as compensation. Repudiation of claim is based on legally sustainable grounds and hence there is no deficiency of service on the part of the opposite party.

Both parties filed their respective affidavits. Ext.A1 to A8 and B1 to B6 marked.

Heard both parties.        

Issues to be considered are

1.    Whether there is any deficiency of service on the part of opposite party in repudiating the insurance claim made by the complainant with respect to the insured vehicle KL-9-N-9235 ?

2.    If so, what is the relief & cost ?

The complainant has purchased a TATA INDICA car bearing registration No.KL-9-N-9235 from one Mr.Vijayan. On 4/11/12 the RC was transferred to the name of the complainant. The previous owner has availed a package policy numbered OG121513-1801-00000131 from the opposite party for a period from 7/5/11 to 6/5/12. The said vehicle met with an accident and heavy damages caused. The complainant spent an amount of Rs.1,19,445/- for repairing the damaged vehicle. Opposite party deputed a surveyor and assessed the loss. Survey report is marked as Ext.B3.

The grievance of the complainant is that the opposite party has repudiated his claim on the ground that the complainant has no insurable interest as the vehicle was not in his name at the time of accident. Ext.B1 would show that the insured of the said vehicle is Mr.Vijayan. Insurance is a contract and it is between opposite party and the original insured. The policy was issued in the name of Mr.Vijayan and there is no privity of contract between the complainant and opposite party.

It is true that the complainant has transferred the RC in his name. Ext.A1 shows the same. At the time of hearing counsel of the complainant submitted that the policy would run with the vehicle.

As per GR10 there must be an automatic transfer of policy with effect from the date of transfer of the ownership of the vehicle. But the aforesaid GR10 was in force upto 30^th June 2002. The GR10 was replaced by GR17 of the revised Indian Motor Tariff. As per GR17 of the Indian Motor Tariff “In the case of transfer of a vehicle the transferee shall apply within 14 days from the date of transfer in writing under recorded delivery to the insurer who has insured the vehicle with the details of registration of vehicle and the number and date of policy. So that the insurer may make necessary  changes in his record and issue fresh certificate of insurance”. Admittedly the complainant has not complied the above said mandatory provision.

The counsel for the opposite party relied on the decision rendered by the Hon’ble National Commission in National Insurance Company Ltd. Vs.Promod Kumar in Revision petition No.1167 of 2006. The complainant has produced Ext.A3. document that is the NOC from the previous owner Mr.Vijayan. Eventhough the RC was transferred in the name of complainant he has not complied the provision of GR17.

From the above discussions we are not in a position to attribute deficiency of service on the part of opposite party in repudiating the insurance claim of the complainant.

In the result complaint dismissed. No order as to cost.

 

       Pronounced in the open court on this the 30^th  day of July 2013.   

    Sd/-

Seena H

President

Preetha G Nair

Member

Bhanumathi.A.K.

Member

 

 

Ext.A1 – Photocopy of certificate of registration of KL-09-n-9235

Ext.A2 –  Photocopy of certificate cum policy schedule

Ext.A3 –  Affidavit given to Complainant by Vijayan

Ext.A4 – Photocopy of driving licence of Nidhi Mon.P

Ext.A5 series – Bills for repairing the car.

Ext.A6 – Photocopy of lawyer notice issued to opposite party

Ext.A7 – Postal acknowledgment card

Ext.A8 – Copy of Final Survey Report.

 

Ext.B1 – Photocopy of policy terms and conditions

Ext.B2 – Claim Form submitted by the complainant to opposite party

Ext.B3 – Final Survey Report

Ext.B4 – Showcause notice issued by the opposite party to the complainant

Ext.B5 –Photocopy of lawyer notice sent by the complainant to opposite party

Ext.B6 – Copy of reply notice sent by the opposite party to the complainant.

 

No cost allowed.