Karnataka

StateCommission

A/1180/2019

The Manager - Complainant(s)

Versus

Range Gowda - Opp.Party(s)

B.C.Shivanne Gowda

08 Jan 2024

ORDER

                                                                     Date of Filing : 05.08.2019

  Date of Disposal : 08.01.2024

 

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

 

DATED : 08.01.2024

 

PRESENT

 

HON’BLE Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

Mr K B SANGANNANAVAR : JUDICIAL MEMBER

 

Mrs DIVYASHREE M : LADY MEMBER

 

 

APPEAL No.1180/2019

 

The Manager

M/s Universal Sompo General

Insurance Co Ltd.,

3^rd Floor, KVV Samrat

217/A, 3^rd Main

Outer Ring Road

Kasturinagara

Bengaluru - 560 043.

 

Now represented by its

Manager

M/s Universal Sompo General

Insurance Co Ltd.,

Sangam Complex

127, Andheri Kurla Road

Andheri (E)

Mumbai - 400 059                                                                   Appellant

(By Mr B C Shivanne Gowda, Advocate)

 

     -Versus-

Mr Rangegowda

S/o Mr Sannegowda K.S.

Aged : 46 years

R/o Katte Hosur Village

Bhathuru

K.Hosakote Hobli

Alur Taluk, Hassan

(In person)                                                                          Respondent                                                   

 : ORDER :

 

Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

01.     This Appeal is filed under Section 15 of Consumer Protection Act 1986 by the OP, aggrieved by the Order dated 05.07.2019 passed in Consumer Complaint No.02/2018 on the file of District Consumer Disputes Redressal Forum, Hassan (hereinafter referred to as the District Forum).

02.     Heard the arguments of the learned counsel for Appellant and Respondent in person.  

03.     The District Forum after enquiring into the matter in its entirety,  deemed it fit to allow the Complaint in part and directed the OP to pay a sum of Rs.1,44,000/- towards repair cost of the Lorry, bearing No.KA13 A 2378 with interest at 6% p.a from the date  of filing of the Complaint within one month from the date of receipt of its Order.   Further directed to the OP to pay a sum of Rs.10,000/- towards the deficiency in service and Rs.5,000/- towards the Litigation Cost to the Complainant within one month from the date of receipt of its Order.   In the event of failing to pay the said sum within the stipulated time, the Complainant is entitled to receive interest on the amount payable, at the rate of 9% p.a, till its realisation.

04.     Aggrieved by this Order, OP is in Appeal inter-alia contending amongst other grounds that, the Respondent/Complainant has purchased the vehicle from one Mr R Srinivas and the Registration Certificate of the vehicle transferred to his name on 17.02.2016, but the Policy was transferred to his name on 25.02.2016 only and the Date of Accident being 23.02.2016.  Hence, Respondent was not having any insurable interest and there is no privity of contract between the parties on the Date of Accident.   Appellant further contended that, the District Forum erred in coming to the conclusion that the Respondent herein is entitled to get the compensation, with the observation that the Transferee is having 14 days time to file necessary application to transfer the policy in his name, from the Date of Transfer of Registration Certificate, even though as per the terms of Policy, for  the Own Damage Claim, the Policy must be in the name of the Registered Owner.   The Respondent has neither taken the Policy nor had filed any Application to Transfer the Policy in his name on the Date of Accident, after getting the ownership of the Registration Certificate transferred in his name. 

          The Learned Counsel for Appellant submitted that, in view of the decision of Hon’ble Apex Court in the case of Complete Insulations (P) Ltd., Vs New India Assurance Co. Ltd., reported in (1996) 1 SCC 221 decided on 21.11.1995, wherein it is held that -

          It is only in respect of third party risks that Section 157 of the New Act provides that the Certificate of Insurance together with the Policy of Insurance described therein "shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred".               If the Policy of Insurance covers other risks as well, e.g., damage caused to the vehicle of the insured himself, that would be a matter falling outside Chapter XI of the New Act and in the realm of contract for which there must be an agreement between the insurer and the transferee, the former undertaking to cover the risk or damage to the vehicle. In the present case since there was no such agreement and since the insurer had not transferred the policy of insurance in relation thereto to the transferee, the insurer was not liable to make good the damage to the vehicle. The view taken by the National Commission is therefore correct. For the above reasons, we see no merit in this appeal and dismiss the same but with no order as to costs.

          Thus, the Appellant seeks setting aside of the Impugned Order by the allowing the Appeal.

05.     Perused the Impugned Order and Grounds of Appeal.

06.     According to the Complainant, he is the owner of the lorry bearing No.KA13 A-2378 and paid a sum of Rs.31,666/- towards Insurance Premium to OP. The vehicle met with an accident on 23.02.2016 at Gudugalale Village, Shanivarasanthe Hobli and accident was reported to the concerned police Station and police have registered the case in crime No.0061/2016 and filed charge sheet.  Further he averred that he spent a sum of Rs.3,00,000/- towards repair of the lorry and submitted a claim to the OP but, OP rejected the claim on 13.06.2016.  Hence, he seeking direction to the OP to pay a sum of Rs.3,10,000/- towards loss, deficiency in service with other reliefs.

          Per contra, the learned Counsel for Respondent during the course of argument, submits that there is a settled principle under provision of Section 157 of Motor Vehicles Act, 1988, wherein,   it clearly provides to the effect that -

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 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.

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.

07.     The stand taken by the OP is that he issued the Policy in the name of one Sri R Srinivas bearing Policy No.2315/558222/ 662/00/000  valid from 22.01.2016 to 21.01.2017 in respect of lorry bearing Regn No.KA13 A-2378 and the same has been transferred in the name of Complainant from 28.02.2016.  It is clear that on the date of accident, i.e., on 23.02.2016, the Insurance Policy does not stands in the name of the Complainant, hence there is no insurable interest to the Complainant, to get the Own Damage Claim in respect of the Lorry in question and there is delay of 14 days in intimating the fact of the accident.  Therefore, OP rightly repudiated the Claim of the Complainant.

08.     The observation of the District Forum in Para 10 of its Impugned Order that, Ex P3: B Register Extract and Ex-P11 :  the Insurance Policy categorically states that the Lorry bearing Regn No. KA13  A-2378 was transferred in the name of the Complainant w.e.f 17.02.2016 and Insurance Policy was transferred on 25.02.2016 i.e., within 14 days of the transfer of Registration Certificate in the name of the Complainant.  When such being the case, OP cannot repudiate the claim and say that the fact of accident intimated to him after 14 days of the accident, is not proper and accordingly, awarded a sum of Rs.1,44,000/- as per Ex-P8 after deducting the bill to the tune of 30% submitted by the complainant.

09.     In view of the foregoing observations, this Commission is of the considered opinion that impugned Order is just and proper and same does not call for any interference from this Commission.  Accordingly, Appeal stands Dismissed. 

10.     The Statutory Deposit in this Appeal is directed to be transferred to the District Commission for the needful.

11.     Send copy of this Order to the District Forum, as well as to the parties concerned, immediately.

 

Lady Member                    Judicial Member                        President

*s