The case  of the complainant is that,  

 

The first complainant is the owner of the vehicle having Reg. No.KL/04/AE/3040, the previous owner of this vehicle was the second complainant.  On 02/11/2016 through a sale agreement complainant purchased the Innova car by paying part of the sale amount and agreed to pay the balance sale amount within 45 days within the agreed period, the first complainant paid the balance amount of the car to the second complainant.  At that time the second complainant handed over all the original records of the vehicle along with signed forms for transferring the ownership of the vehicle.  Thereafter the first complainant submitted application for transfer the ownership before the RTO, Idukki on 20/12/16.  At the time of purchase of this car, it is having valid insurance policy from 27/03/16 to 26/03/17 in the name of the second complainant.

 

                                                                                                                        (Cont....2)

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While so, the said car met with an accident on 27/12/16 and caused severe damages and entrusted to an authorised workshop for repairing.  For that, the complainant spent Rs.1,49,456/- for repairing the vehicle and the vehicle returned to him after curing the defects on 21/01/17.  Thereafter complainant lodged a claim petition before the opposite party insurance company, but the opposite party company repudiated the claim on some baseless reason.  The   complainant further stated that at the time of accident the vehicle was duly insured in the name of its prior owner, the second complainant, and he submitted all the papers before the RTO authority  before the accident, and he obtained the changed RC book was only on 08/02/17.  They further stated that, the name of the insurance can be changed only after transferring the ownership of the vehicle.  Here, the complainant submitted the papers for transferring the ownership before the RTO in right time, and the delay caused in transferring the ownership is not a fault from his side.  By repudiating the insurance claim on the reason of non-transferring the ownership by the opposite party company is a gross deficiency in service, against this the complainant filed this petition seeking relief such as to direct the opposite party  to honour the claim, and further direct them to pay cost and compensation.

 

Upon notice opposite party entered appearance and filed detailed version.  In their version opposite party contented that the interests of second complainant, Krishnakumar, was insured by them vide Private Car Package Policy, subject to the terms and  conditions incorporated and to the extent of limits mentioned in the policy.  On getting information about the accident the opposite party deputed IRDAI Licensed Surveyor has assessed the loss and submitted his report with an assessment of Rs.90,305/-.  During the course of claim processing, the opposite party received the copy of receipt issued by the Motor Vehicle Department Kerala dated 20/12/16, evidencing fees of Rs.150/- being paid by the first complainant to the effect that said person had applied for transfer of the vehicle in his name.

 

On further enquiry the opposite party came to know that the person who applied for transfer of the ownership of the vehicle is the possessor and owner of the vehicle in question at the time of accident.  It proved that the actual owner of the vehicle Mr.Krishnakumar had already  sold out the  vehicle

                                                                                                                          (Cont....3)

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to Mr.Laiju Joseph, who applied for transfer of the ownership of the vehicle, on or before  20/12/16, ie, prior to the accident and named insured ceased to have insurable interest in the vehicle.  He already received the cost of the vehicle in the form of consideration and as such claim is not sustainable under the policy.

 

Opposite party further contented that as per GR 17 of the policy condition “on transfer of ownership, the liability only cover, either under a liability only policy or under a package policy, is deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of transfer.  The transference 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 the registration of the vehicle  and the number and date of the insurance policy so that the insurer may make the necessary charges in their record and issue fresh certificate of insurance.  In case of package policies, transfer of the own damage section of the policy in favour of the transference, shall be made by the insurer only on receipt of a specific request from the transferee  along with the consent of the transferor.  Transfer of package policy in the name of the transferee can be done only on getting acceptable evidence of sale and a fresh proposal form duly  filled and signed.  The old certificate of insurance for the vehicle, is  required to be surrendered and a fee of Rs. 50 is to be collected for issue of fresh certificate in the name of transferee.  If for any reason, the old certificate of insurance cannot be surrendered, a proper declaration to that effect is to be taken from the transferee before a new certificate of insurance is issued.

 

The opposite party further contented that, the first complainant  having no policy in his name.  There was no contract of insurance with the opposite party  thus there is no question of rendering any services to the first complainant.  As there is no privaty of contract with the first complainant, and the opposite party having no locus standi to file  this complaint, and the complainant is having without a merit and thus deserves to be dismissed with cost.  

 

Evidence adduced by the complainant by way of proof affidavit and documents.  Complainant was examined as PW1 and Ext.P1 to Ext.P4 were marked.  Ext.P1 is the copy of insurance policy,  Ext.P2 is  the  copy  of RC book,

                                                                                                                          (Cont....4)

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Ext.P3 is the copy of receipt  by the RTO, and Ext.P4 is the copy of bill.

 

From the defence side no evidence is adduced.

 

Heard both sides in details.

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?

 

The Point:- We have heard the counsels for both the parties and had gone through the evidence on records.  It is an admitted fact that the first complainant purchased the alleged vehicle from the second complainant on 02/11/16 by executing a sale agreement between them later on the complainant applied for transferring the vehicle registration in his name from the second complainant's name on 20/12/16.  Unfortunately  he received the transferred RC ownership was only on 08/02/17.   In the mean time, the vehicle was met with an accident on 27/12/16.  ie, after the submission of transfer application before the RTO, Idukki.  But on perused of records it is seen that, even though the complainant applied for transferring the ownership before the date of accident, the RTO authorities processed it after the date of accident.

 

On perusal of records it is seen that the present owner of the vehicle duly applied for transferring the ownership of the vehicle in his name and remitted the prescribed fees.  It is specifically admitted by the opposite party that they received the copy of receipt issued by the Motor Vehicle Department, Kerala, dated 20/12/16 evidencing fees of Rs.150/- being paid by the first complainant to the effect that, he applied for transfer of the vehicle ownership in his name.  This latches happened from the part of the RTO, authorities and the complainant is no where liable for that.  Here the opposite party sticking on the General Rule 17 of the policy that “the transferee shall apply within 14 days from the date of transfer in writing under record delivery  to the insurer  who has insured the vehicle with the details of registration of the vehicle and the number and date of the insurance policy”.  On going through the GR 17 of the insurance policy it is seen that the GR mandates that the transference  shall  apply  within  14  days  from  the  date  of   transfer  of 

                                                                                                                          (Cont....5)

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ownership.  In  this  case  it  is  evident that  the first complainant submitted   proper application before the RTO authorities on 20/12/16, and as per the General Rule 17, he can approaches the insurance company within 14 days from the date of transfer of ownership.  Before that, the person  who applied for transfer of ownership  is having no right to approach the insurance company. As per records the vehicle was got transferred in the name of the first complainant was only from 08/02/17 onwards.  Unfortunately the accident was happened on 27/12/16.  Before the date of accident, the complainant approached the RTO authorities and submitted proper records for transferring the ownership.  Hence complainant cannot be blamed in this matter.  He acted properly.  Under this circumstances the opposite party can be considered the vehicle insurance policy discussed above is a deemed policy for the time being and can consider the claim of the first complainant.

 

It is also noted that the surveyor assessed the damage of the vehicle for an amount of Rs.90,305/- and the vehicle is having valid insurance policy at that time in the name of the second complainant.  On evaluating the points discussed above, we are of the opinion that, the complainant complied all the legal formalities in time, and the opposite party rejected the claim on some baseless technical reasons.  The repudiation  of this claim on some technical reason is unjustifiable and the opposite party is bound honour the claim as per the assessment of the surveyor.

 

Hence on the basis of above discussion complaint allowed.  Opposite party is directed to pay the claim amount as assessed by the surveyor to the first complainant within 30 days from the date of receipt of this order along with 12% interest from the date of accident. 

 

Pronounced in the Open Forum on this the  30th day of October, 2018.