Dt. 29.10.2015
JAGANNATH BAG, MEMBER
The present appeal is directed against the Order dated 26.09.2014 , passed by the Ld. District Consumer Disputes Redressal Forum, Purba Medinipur in Consumer Case No. 41/2014 , whereby the complaint was allowed with cost against the OP.
The Complainant’s case, in brief, was as follows:
The Complainant purchased a vehicle bearing No. WB-06A/8688 from Md. Tahir Hussain on 21.08.2013. The vehicle was transferred in the name of the Complainant on 31.10.2013 but the R.C. book was received by the Complainant on 11.01.2014. The vehicle was insured in the name of Md. Tahir Hussain and the policy was valid for the period from 03.07.2013 to 02.07.2014. The insured declared value of the vehicle was Rs. 5,22,000/-. The vehicle met with an accident on 07.01.14 at Harina under P.S. Khejuri in the District of Purba Medinipore. The vehicle was totally damaged. Khejuri P.S. Case No. 04/1411/S279/338/427 IPC was started on 09.01.2014. The OP Insurance Company was informed of the accident on 09.01.2014. Though the vehicle was garaged for repairing and the Complainant claimed insured value from the OP, no payment was made. In the said circumstances a complaint was filed before the Ld. Forum below with prayer for direction upon the OP to pay compensation of Rs. 5,22,000/- with interest @ 10% p.a from the date of accident till realization, apart from payment of litigation cost of Rs. 10,000/-.
The complaint was contested by the OP who, in their W.V., denied all material allegations and contended, inter alia, that the Complainant did not hand over all documents of the vehicle and the repair amount and purchase receipts. Further, the Complainant did not change the name of owner of vehicle in the policy certificate after change of ownership. Again, it was asserted that one Buddhadeb Mondal , instead of the Complainant, filed the FIR. It was also noted that the accident happened due to negligence on the part of the driver. The OP was not liable to pay any compensation. Accordingly, the OP prayed for dismissal of the complaint petition.
Ld. Forum below having perused the facts and materials on record observed that the vehicle was transferred in the name of the Complainant from the previous owner on 31.10.2013, but there was no document regarding the change of name in the policy certificate related to the vehicle. Ld. Forum below observed that the provision of Section 157 of the Motor Vehicles Act, 1988, is related to Third Party Risks and hence the said provision is not applicable in the case in hand. It was found from the documents filed by the parties that the vehicle was damaged due to the accident. Ld. Forum below relied upon a circular issued by the General Insurance Company in the year 1994, according to which, on transfer of the vehicle, the benefits under the policy in force will automatically accrue to the new owner. Ld. Forum below referred to the decision of the Hon’ble National Consumer Disputes Redressal Commission as reported in IV (2007) CPJ 289 (NC) holding that Indian Motor Tariff Regulations are binding upon the Insurance Companies and according to such regulations the transfer of insurance benefit is automatic in favour of the transferee. It was, therefore, decided that the OP had deficiency in service in not extending the benefit of insurance to the Complainant, particularly, in the perspective of the provision of the Motor Vehicles Act and the circular issued by the General Insurance Company in the year 1994. Ld. Forum below having referred to the Surveyor’s report allowed a sum of Rs. 2,47,731/- as compensation along with interest @ 10% p.a. and Rs. 5,000/- as litigation cost. The entire amount was ordered to be paid within 30 days from the date of communication of the order, failing which OP shall be liable to pay fine of Rs. 100/- per day from the date of issuance of the order till full compliance.
Being aggrieved by and dissatisfied with the order of the Ld. Forum below, the OP-turned-Appellant has come up before this Commission with the present appeal praying for direction, inter alia, to set aside the impugned order.
The memorandum of appeal has been filed together with copies of the impugned order, the petition of complaint, the W.V filed by the OP before the Ld. Forum below, the FIR filed with the Khejuri P.S. and the copy of the repudiation letter dated 22.01.2013 issued by the Insurance Company to Md. Tahir Hussain and the Survey Report filed by the Surveyor. The Appellant has filed BNA together with copies of the order dated 18.10.2011 of the Hon’ble National Consumer Disputes Redressal Commission in Revision Petition No. 1528 of 2007 and also the order of the Hon’ble National Commission in Revision Petition No. 118 of 2013 . Another order of this State Commission in First Appeal No. FA/792/2012 has been cited by the Appellant.
Ld. Advocate appearing for the Appellant submitted that the Appellant purchased the vehicle from its registered owner, namely, Md. Tahir Hossain, but the policy of insurance relating to the vehicle was not transferred in his name. There was no privity of contract between the Appellant and the Respondent. Consequently, the Appellant had no liability to pay any claim to the Respondent/Complainant as the latter was not a consumer under the Appellant/OP Insurance Company. Referring to G.R. 17 of Indian Motor Tariff Regulations, which is binding upon the parties following Section 64 U and 64 (UC) of the Insurance Act 1938 , Rs.50/- is required to be paid for such purpose which has not been complied. Referring to the decision of the Hon’ble National Commission as reported in I (2011) CPJ 22 , Ld. Advocate emphasized that if a vehicle is sold to any person, that person has to intimate within 14 days from the date of such transfer for getting the benefit of insurance . Further, the total guide line framed by the Hon’ble Apex Court of India in the case of Complete Insulation Private Ltd. –vs- New India Assurance Co. Ltd. reported in 1996 (I) SCC 221, it has been clearly held that it is always compulsory on the part of the transferee to intimate the Insurance Company within 14 days from such transfer following Section 157 of the Motor Vehicles Act, 1988. In the said decision the Hon’ble Apex Court has further been pleased to hold that benefit of automatic transfer of insurance policy can be attributed to the 3rd party in case of a Road Traffic accidental death or injury , but such benefit can not be given to an owner of a vehicle. In the present case , the Complainant does not have any insurable interest and the order of the Ld. Forum below is liable to be set aside.
Ld. Advocate appearing for the Respondent submitted that the Section 157 of the Motor Vehicles Act relates to the Third Party Risk and whatever stipulations are provided under the said section , including intimation of transfer of vehicle will not be applicable . In the present case, as the claim relates to damage to the vehicle, it has been rightly observed by the Ld. Forum below that as per the circular of the General Insurance Company, the transfer of insurance benefit is automatic for the transferee. That means the benefit under the policy in force will automatically accrue to the new owner. The Ld. Forum below adjudicated the matter in a reasoned and lawful manner. The impugned order deserves to be upheld with costs against the Insurance Company.
Decision with Reasons :
The point for consideration is whether the impugned order suffers from material irregularity or legal infirmity.
Admittedly, the vehicle was previously owned by Md. Tahir Hossain who transferred his vehicle on 31.10.2013 . The Insurance Policy was valid for the period from 03.07.2013 to 02.07.2014 and the said insurance policy was all along recorded in the name of the previous owner i.e., Md. Tahir Hossain . On the date of alleged accident i.e., 07.01.2014 , the Insurance Policy stood in the name of the previous owner. As per GR 17 of Indian Motor Tariff Regulations that replaced the old GR 10 , on transfer of ownership , transferee is required to apply within 14 days from the date of transfer in writing under recorded delivery to the insurer who had insured the vehicle , with the details of registration of vehicle, date of transfer of the vehicle, previous owner of the vehicle and the date and the number of the policy so that the insurer may make necessary changes in the record and issue fresh certificate of insurance. Unless, the aforesaid procedure of transfer of vehicle is followed and complied, the transferee can not claim any insurable interest. In the present case, the Respondent/Complainant did not get the insurance policy transferred in his name with due intimation of transfer of vehicle within 14 days from the date of such transfer of vehicle. The policy continued in the name of the original registered owner. The transferee actually did not have any contract of insurance with the insurance company. Accordingly, he did not have any insurable interest when the vehicle met with the accident. There was in fact no fresh agreement between the insurer and the transferee who is the Respondent hearin. The insurance company was not liable to make good the damage to the vehicle.
Going by the above discussion we are of the considered view that the impugned order suffers from material irregularity and legal infirmity. In the result , the appeal succeeds. Hence,
Ordered
That the appeal be and the same is allowed. The impugned order is set aside. Consequently, the complaint stands dismissed. There shall be no separate order as to costs.
