ORDER               Date:  21st  January 2017

Manju Bala Sharma, Member

          Instant complaint has been filed on 07-01-2016 stating therein that the complainant was the owner of one Maruti Wagon-R  Lxi vide its registration No. DL-9CP-3191, which was insured by the respondent Company vide its Policy No. 215400/31/2014/5892 for the period 30/12/2013 to 29/12/2014.  It is further stated

that on 24/12/2014 at about 9:00 PM the complainant parked his car in front of his house.  On 25/12/2014 at about 8:00 AM when the complainant came to the place of the vehicle he found the vehicle missing.  Complainant immediately informed concerned Police Station Gazipur and FIR No. 1091/2014 U/s 379 IPC was registered. On 03/03/2015 untraced report was filed before the court of Metropolitan Magistrate Karkardooma Delhi. 

          It is further stated that on 22/05/2015 the complainant submitted all the

necessary documents along with untraced report to the OP by way of speed post.  It is further stated that complainant approached several times to the OP for release of the insurance amount but OP always made lame excuses on one pretext of the other. 

The complainant sent legal notice to OP on 23/10/2015 but neither any reply to the legal notice nor any compliance to the same has been made by the OP. 

          It is prayed that OP be directed to pay suitable compensation/claim amount as per the policy to the complainant towards stolen/theft vehicle in question along with interest @ 18% per annum from the date of the filing of the claim till its realization, direct to pay OP a sum of Rs. 50,000/- (Fifty Thousand only) as cost of litigation.

          Notice was issued to the OP.  OP entered appearance and filed its written statement on 23/03/2016.  In the preliminary objections the OP stated that complainant has no insurable interest in the vehicle as the policy has been issued in favour of Shri Shankaran Santosh and therefore, there is no privity of contract  between the complainant and the OP.  The complainant has neither taken any insurance policy nor had hired the service of OP.  Hence the complainant is not a consumer within the meaning of Sec 2 (1) (d) of the consumer protection, and therefore the compliant is not maintainable and is liable to be dismissed. 

OP has further stated that OP had never applied for transfer of Insurance Policy in his favour under the previous model insurance policy therefore, the benefit under the policy standing in the name of Shri Shankaran Santosh cannot be legally passed on to the complainant for the reason that the contract of Insurance is a transfer of contract between the insurer and the insured. 

          On merits while admitting the contents of para 4 and 5 as matter of record and the nature of the complaint of the vehicle in question being RC of said vehicle in the name of complainant, OP denied all the allegations contained in the complaint and stated that mere sending of the untraced report by the complainant to the OP does not create any right in the policy as a policy is still in the name of Shri Shankaran Santosh whose insurable interest ceased as soon as he sold the vehicle to the complainant. 

          Since 18/05/2016 the date when it was fixed for Rejoinder/CE nobody entered appearance on behalf of complainant and after several opportunities to the complainant the right to file Rejoinder/CE was closed by this Form on 27/09/2016 and OP filed its OPE on 03/10/2016. 

          OPE filed by the OP reiterating the facts stated in the written statement.  OP filed copy of the Insurance Policy Exhibit R1 Colly, Copy of the GR. 17, as EX R2 in proof  of its case. 

We have heard learned counsel for the OP and gone through the record and relevant documents filed by both the parties.  

          The points to be considered in the present case are as under: 

          (a)     Whether complainant is a consumer?

          (b)     Whether there is any deficiency in service or unfair trade practice on

the part of OP?

          (c)      Relief.

          There is no privity of contract between the complainant and OP and insurable interest of the insured Shri Shankaran Santosh ceased as soon as he sold the vehicle to the complainant.   He has relied upon the Judgement of Sarfarjudeen VS BM New India Assurance Co. Ltd., RP NO. 4444 of 2012 vide which the Hon. National Commission has observed that as the complainant has no insurable interest in the vehicle the complaint is not maintainable.

Counsel for OP has relied upon GR 17 Transfer Rules of India Motor Traffic, which reads as under :

                   xxx                       xxx                       xxx            

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 transferee shall apply within fourteen 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, the date of transfer of the vehicle, the previous owner of the vehicle and the number and date of the insurance policy so that the insurer may make the necessary changes in his 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 transferee, shall be made by the insurer only on receipt of a specific request from the transferee along with consent of the transferor.  If the transferee is not entitled to the benefit of the No Claim Bonus (NCB) shown on the policy, or is entitled to a lesser percentage of NCB than that existing in the policy, recovery of the difference between the transferee’s entitlement, if any, and that shown on the policy shall be made before effecting the transfer.

A fresh Proposal Form duly completed is to be obtained from the transferee in respect of both Liability Only and Package Policies.

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 the 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.

                    xxx                       xxx                       xxx            

We have gone through GR 17.  It is clearly mentioned in it that on transfer of ownership the transferred shall applied within 14 days from the date of transfer in writing under recorded delivery of the insurer who has insured vehicle, with the details of registration of the vehicle, the date of transfer of the vehicle, the previous

owner of the vehicle and the number and date of insurance policy so that the insurer may make necessary changes in this regard and issue fresh certificate of Insurance. 

In the case in hand the complainant has nowhere stated in the complaint that he has purchased the above said Car from Mr. Shankaran Santosh and whether he applied in writing to the Insurance Company for the transfer of the policy in his name.  As complainant has not entered appearance after the filing of the written statement by the OP it seems that he is no more interested in prosecuting his case.

Looking to the above facts and circumstances we are of the considered opinion that complainant is not a consumer within the meaning of Section 2 (1) (d) of the Consumer Protection ACT 1986 hence present complaint of the complainant is not maintainable in this forum.  As this complaint is not maintainable, therefore, there is no need to decide the remaining points of the consideration.  Hence complaint is dismissed accordingly.

File be consigned   to Record Room. 

Announced on this   ………………