BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Complt.  Case No : 1352 of 2009

Date  of Institution:    01.10.2009

Date  of Decision  :    06.08.2010

Sundeep Singh Rajvanshi s/o Late Sh.Om Parkash, R/o #1396/1, Sector 44-C, Chandigarh.

……Complainant

V E R S U S

Oriental Insurance Company, Regional Office, SCO No.109-111, Sector 17-D, Chandigarh.

.…..Opposite Party

CORAM:          SH.LAKSHMAN SHARMA                         PRESIDENT

                    SH.ASHOK RAJ BHANDARI            MEMBER

                    MRS.MADHU MUTNEJA                        MEMBER

PRESENT:     Ms.Babita Bist, Adv. for the complainant.

Sh.R.K.Bashamboo, Adv. For the OP.

PER MADHU MUTNEJA, MEMBER

                The instant complaint has been filed by Sundeep Singh Rajvanshi against Oriental Insurance Company for wrongly repudiating his insurance claim.

                The facts of the case are as under:-

                The complainant purchased a second-hand Hyundai Santro Car bearing Regd. No.CH-03-M-5196 from M/s Elite Industrial Products.  The car was insured for a sum of Rs.1,30,000/- from 3.1.2009 to 2.1.2010.  The ownership of the car was transferred in the name of the complainant within 10 days of purchase.  However, the insurance policy had not yet been transferred in the name of the new owner. 

                As per the complainant the car was stolen from Delhi on 5.9.2009.  The complainant lodged an FIR with the local police station to  this effect.  After that, the complainant informed the OP about the theft of the car. They asked him to submit his claim.  The OP’s then appointed a Surveyor to verify the claim.  Meanwhile the earlier owner of the car – M/s Elite Industrial Products also sent a letter to the Surveyor that the vehicle has been sold by them to the complainant and the R.C. stands in the name of the complainant. 

                Unfortunately, the OP repudiated the claim stating that the complainant did not have any insurable interest with them because the R.C. (ownership) and insurance was in the name of M/s Elite Industrial Products.        The  complainant has attached the R.C. in the name of earlier owner issued on 7.11.2003 and the insurance policy also in the name of the earlier owner issued on 2.1.2009. 

                The complainant told the OP that he felt that since the R.C. stood in his name so he felt that the insurance transfer was automatic.  But the OP’s stated that they had rightly repudiated his claim. 

                The complainant was thus left with no option but to file the instant complaint praying that the OP’s be directed to make payment to him as per insurance policy.

2]             After admission of the complaint, notice was sent to OP.

3]             In the reply filed by the OP, they have admitted that the RC of the vehicle purchased by the complainant from the earlier owner was transferred in the name of the complainant on 23.4.2009.  However, the insurance still remained untransferred.  The car of the complainant was stolen on 5.6.2009 and not 5.9.2009 as alleged.  After the theft was reported to them, an Investigator was appointed.  The Investigator, visited the place of both the earlier owner (insured) and the complainant.  He has stated in his report that the insured (earlier owner) informed him in writing that he had sold the vehicle to the complainant and now has nothing to do with it. A copy of the letter by the earlier owner and the verification/registration certificate of the Registering & Licensing Authority, U.T., Chandigarh has been placed as Annexure R-1 & R-2 of the reply.  As per these records, it is clear that the ownership of the car now vested in the name of the complainant.   

                The OP has further stated that the complainant had not made any request to them to transfer the policy in his name.  As such there was no privity of contract between the complainant and the OP.  As per term GR.17 of the Motor Tariff Act, the transfer of a packaged policy in the name of the transferee can be done only on getting acceptable evidence of sale along with fresh proposal form.   In view of this factual position, the OP has rightly repudiated the claim of the complainant.  There can be no automatic transfer of insurance benefit on the sale of the vehicle.  They have therefore prayed for dismissal of the complaint.

4]             We have heard the ld.Counsel for the parties and have also perused the record and evidence thoroughly.      

5]             As per investigation report, the claim has been filed by the complainant – Sundeep Singh Rajvanshi.  The OP has admitted that the R.C. of the stolen car also stood transferred in the name of the complainant.  However, the insurance stood in the name of the earlier owner.  The vehicle was stolen from Noida on 5^th June, 2009.

6]             From the documents placed on record also, it is evident that the car has been transferred in the name of the new owner i.e. complainant.  The OP have admitted this fact in their reply and also placed on record Ann.R-2, which clearly shows that the car stands in the name of the complainant.  But on the date of theft, the car insurance stood in the name of the earlier owner. 

7]             The issue now only remains whether the OP is bound to honour its commitment when the R.C. was in the name of complainant, but insurance was not.

8]             Section 157 of Transfer of Certificate of Insurance of Motor Vehicles Act,1988 stipulates as under:-

“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 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.”

9]             In this regard, reliance can be placed on the recent judgment of Hon’ble National Commission in case in Oriental Insurance Co. Ltd. Vs. Om Prakash Gupta & Anr., I(2009) CPJ 183 (NC) wherein it has been held that “….on sale of vehicle, the benefit under the Policy in force on the date of transfer shall automatically accrue to the new owner. i.e. the complainant…..”

10]            After the car has been stolen, the Insurance Company is bound to honour its commitment as per the latest judgment above.  They should not have repudiated the claim of the complainant.

11]            As per the above findings and discussion, we are of the opinion that the OP must indemnify the loss suffered by the complainant.  Therefore, the complaint is allowed. 

                The OPs are directed as under:-

i)         Pay Rs.1,30,000/- to the complainant being the insured value of the car stolen.

ii)        Pay Rs.10,000/- as compensation to the complainant for the harassment and loss suffered by him.

iii)       Pay Rs.5000/- as litigation cost to the complainant.

The aforesaid amounts shall be paid by the OP within a period of 45 days from the date of receipt of certified copy of this order, failing which they shall pay the aforesaid amount of Rs.1,40,000/-, except litigation cost, along with interest @12% per annum from the date of order till the date of actual payment, besides paying the litigation cost of Rs.5,000/- to the complainant.

12]            Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

06.08.2010                                                             Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

                                                                   Sd/-

                                       (ASHOK RAJ BHANDARI)

MEMBER

                                                                                      Sd/-

                                                             (MADHU MUTNEJA)

MEMBER

‘Om’