BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BHIWANI.
Complaint No.:230 of 2014.
Date of Institution: 11.08.2014.
Date of Decision:16.05.2016
Sadhu Ram son of Sh. Radhy Shyam, resident of village Rampura, Tehsil Charkhi Dadri, District Bhiwani.
….Complainant.
Versus
The New India Assurance Company Limited, SCO 23-24, IInd Floor, LIC Building, HUDA, Jind-126102, having one of its Branch at Circular Road, Bhiwani through its Branch Manager. (Insurer of vehicle No. HR-19G/1544).
…...Opposite Party.
COMPLAINT U/S 12 & 13 OF CONSUMER PROECTION ACT.
BEFORE: - Shri Rajesh Jindal, President.
Smt. Ansuya Bishnoi, Member.
Present:- Shri R.S. Sharma, Advocate, for complainant.
Shri Rajbir Singh, Advocate for OP.
ORDER:-
Rajesh Jindal, President:
The case of the complainant in brief, is that the complainant had purchased a vehicle No. HR-19G-1544 having chassis No. MAT491101CJB05781 and engine No. S2A8005144 from Anil son of Shri Ram Kumar and the aforesaid vehicle was got insured from the respondent company which was valid from 23.02.2013 to 22.02.2014. It is alleged that the above said vehicle met with an accident on 17.01.2014 and the abovesaid vehicle was repaired there and a bill of Rs. 50,964/- was paid by the complainant for repair of his vehicle under the belief that the said amount would be indemnified by the respondent company, being the insurer of the vehicle. Thereafter, the complainant filed the claim with the respondent company in respect of his vehicle insured by the respondent but the said claim of the complainant was repudiated by the respondent vide letter dated 26.03.2014 citing the baseless reason that no insurance contract between the complainant and the insurance company. It is alleged that after purchasing the vehicle complainant visited in the office of respondent company for transferring the name of owner in the insurance cover note but they demanded registration certificate of the vehicle. It is alleged that after several requests and representations by the complainant in this regard to indemnify his loss occurred to him due to accident of his vehicle, which was insured by the respondent, nothing has been done in this matter to satisfy the complainant. The complainant further alleged that due to the act and conduct of the respondent, he had to suffer mental agony, physical harassment and financial losses. Hence, it amounts to deficiency in service on the part of respondent and as such he had to file the present complaint.
2. On appearance, OP filed written statement alleging therein that the vehicle stood insured in the name of one Anil Kumar son of Shri Ram Kumar and as such the complainant had no insurance contract with the respondent at the time of alleged accident. It is submitted that the amount shown to have been incurred on the repairs of the vehicle is very much inflated, imaginary and without any basis. Hence, in view of the facts and circumstances mentioned above, there is no deficiency in service on the part of opposite party and complaint of the complainant is liable to be dismissed with costs.
3. In order to make out his case, the complainant has placed on record documents Annexure C-1 to Annexure C-7 alongwith supporting affidavit.
4. In reply thereto, the opposite party placed on record Annexure R1 to Annexure R3 alongwith affidavit Mark A.
5. We have gone through the record of the case carefully and have heard the learned counsels for the parties.
6. Learned counsel for the complainant reiterated the contents of the complaint. He submitted that the complainant purchased the vehicle in question from Anil son of Ram Kumar and which was transferred by the registering authority on 09.01.2014 and the vehicle in question was met with an accident on 17.01.2014 within the period of insurance from 23.02.2013 to 22.02.2014. The complainant spent Rs. 50,964/- on the repairs. In support of his contention he referred certificate of registration Annexure C-1, insurance policy Annexure C-2 and bills Annexure C-3. He referred Section 157 of the Motor Vehicles Act, 1988, and the judgment of Hon’ble State Commission, Haryana in case of Oriental Insurance Company Ltd. Versus Suresh I (2010) CPJ 563.
7. Learned counsel for Opposite Party reiterated the contents of his reply. He submitted that the vehicle in question was purchased by the complainant vide agreement to sell dated 22.10.2012 Annexure R-2 and thus the complainant was not having any insurable interest as on the date of accident. The surveyor in his report dated 20.02.2014 Annexure R-1 mentioned the abovesaid fact. He has also assessed the loss to the tune of Rs. 39,644/-. The OP is not liable to pay any claim to the complainant vide repudiation letter dated 26.03.2014 Annexure R-3.
8. In the light of the pleadings and arguments of the parties, we have examined the relevant material on record. According to the certificate of registration Annexure C-1, vehicle in question has been transferred in the name of complainant on 9.01.2014 and the accident occurred on 17.01.2014 during the insurance period vide insurance policy Annexure C-2 which is not disputed. Now the question arises for our consideration, whether the complainant was having any insurable interest as on 17.01.2014 the date of accident. Section 157 of the Motor Vehicles Act is reproduced below:-
Transfer of certificate of insurance (1) Where a person in whose favour the certificate of insurance has been issued in accordance with the provisions of this Chapter transfers to another person the ownership of the motor vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and the policy described in insurance relating thereto, the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer.
[Explanation:- For the removal of doubts, it is hereby declared that such deemed transfer shall include transfer of rights and liabilities of the said certificate of insurance and policy of insurance].
(2) The transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance and the policy described in the certificate in his favour and the insurer shall make the necessary changes in the certificate and the policy of insurance in regard to the transfer of insurance.
The provision of Section 157 clearly lays down that the transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance. It has not come on the file whether the complainant applied for the transfer of the insurance policy in his name as envisaged in Section 157 of the Motor Vehicles Act. The judgment in case Oriental Insurance Company (supra) does not support the contention of the complainant. The similar issue came up before the Hon’ble Supreme Court of India in case of Complete Insulation Pvt. Ltd. Vs. New India Assurance Co. Ltd. (1996) 1 SCC 221. It was held that the language used in Section 157 of the Motor Vehicles Act regarding the automatic transfer of insurance policy was concerned only on the 3rd party claim and not on damage claims.
9. In the instant case, it is not disputed that the complainant had not given any intimation to the insurance company within 14 days from the date of transfer of the registration certificate of the vehicle in his name and as such in view of the law laid down by Hon’ble Supreme Court of India in Complete Insulation (supra), the complainant cannot be seek any compensation from the insurance company and as such the complaint of the complainant is not maintainable. Resultantly, the complaint of the complainant is dismissed being devoid of merits with no order as to costs. Certified copies of the order be sent to the parties free of costs. File be consigned to the record room, after due compliance.
Announced in open Forum.
Dated: 16.05.2016.
(Rajesh Jindal)
President,
District Consumer Disputes
Redressal Forum, Bhiwani.
(Ansuya Bishnoi)
Member
