Date of filing : 07-03-2008<br /> Date oF Order : 10-11-2008.<br /> IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD<br /> CC.22/08<br /> Dated this, the 10th day of November 2008.<br /> PRESENT<br /> SRI.K.T.SIDHIQ : PRESIDENT<br /> SMT.P.RAMADEVI : MEMBER<br /> SMT.P.P.SHYMALADEVI : MEMBER<br /> <br /> 1)Revathi, W/o.Vishwanatha, <br /> R/at Naduvadi House,<br /> Siribagilu, Po. Kasaragod. } Complainants<br /> 2)Udaya.K, S/o.Shankara Patali,<br /> R/at Uliya, Po.Madhur,<br /> Kasaragod.<br /> <br /> The Branch Manager,<br /> National Insurance Co. Ltd, } Opposite party<br /> M.G.Road, Kasaragod.<br /> <br /> O R D E R <br /> SRI.K.T.SIDHIQ, PRESIDENT<br /> <br /> <br /> The question arose for consideration in this complaint is:<br /> Whether the transferor will lose insurable interest on a vehicle if the vehicle is transferred but the certificate of insurance still stands in the name of transferor?. According to first complainant Revathi, she entrusted the autorikshaw bearing Registration No.KL.14/B 4761 with second complainant Udaya on 27-01-06. Udaya used to drive the vehicle with her consent. The autorikshaw was duly insured with National Insurance Co. Ltd. It met with an accident on 17-04-06. On intimation surveyor appointed by insurer assessed the damages to the tune of Rs.7500/-. Revathi submitted all the documents pertaining to the claim with the insurer since the insurance policy was in her name. But insurer repudiated the claim on the ground, that Revathi had no insurable interest on the vehicle since she assigned the vehicle to second complainant and the RC of the vehicle stands ion the name of Udaya. According to complainants the repudiation of claim amounts to deficiency in service. Hence the complaint.<br /> 2. National Insurance Co. Ltd filed version contending that Revathi had no insurable interest w.e.f. 2-2-06 on the date of which the vehicle is transferred in favour of Udaya. Hence the claim is repudiated.<br /> 3. Both parties were heard and Ext.B1 the copy of RC of KL-14/B4761 Autorikshaw on Ext.B2 the survey report is marked. There is no dispute regarding the insurance coverage and the accident occurred etc. But according to counsel for opposite party at the relevant time of accident, the claimant Revathi had already assigned her vehicle to Udaya and she had no insurable interest on the vehicle. Further the transfer of vehicle to second complainant is suppressed by the complainant to defraud the insurer. Hence the claim preferred by Revathi is repudiated.<br /> 4. The counsel for the complainants submitted that the insurer cannot evade the liability to honour the claim in any way. He relied on the decisions rendered by the Hon’ble National Consumer Disputes Redressal Commission reported in IV (2007)CPJ 289 (NC) in the case of Shri Naryan Singh v. New India Assurance Co. Ltd in which the Hon’ble National Commission quoting Regulation 10 of the General Regulation of India Motor Tariff has held that on transfer of vehicles the insurance benefits will be automatically transferred in favour of transferee and hence the insurer is liable to honour the claim of the transferee even if policy stood in the name of transferor.<br /> 5. The counsel for the complainants further submitted that if the claim has to be preferred by the second complainant in view of the above decision, he should given an opportunity for the same.<br /> 6. The counsel for opposite party submitted that the general regulation mentioned as GR 10 in India Motor Tariff came in to effect on 1-8-1989 has subsequently superceded by the provisions of India Motor Tariff w.e.f. 30th June 2002. Counsel for opposite party produced the copies of relevant pages of regulation in which GR 17 deals with transfers. The said Regulation is quoted below.<br /> <br /> 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.<br /> 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 en titled 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.<br /> A fresh Proposal Form duly completed is to be obtained from the transferee in respect of both Liability Only and Package Policies.<br /> 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. <br /> Endorsement IMT-3 is to be used.<br /> <br /> 7. So as per this India Motor Tariff GR 17, in case of Package Policies for transfer of ‘Own damage’ Section of the policy in favour of the transferee there shall be a specific request from the transferee along with the consent of the transferor. Complainants has no case that such a request is made. Hence this regulation turns against the complainants.<br /> 8. But the counsel for complainant invited our attention to yet another decision of the Hon‘ble National Commission reported in IV (2005) CPJ 110(NC) In the case of BANOWARILAL AGRAWALLA v. NATIONAL INSRUANCE CO.LTD In that case it was the transferee who filed complaint for own damage claim while the certificate of insurance stands in the name of transferor. In paragraph 10 of the said decision the Hon‘ble National Commission held that the petitioner has got no locus to file the complaint since he was not the insured. The Commission further held that the claim should have been filed by the original policy holder and not by the complainant/purchaser of the vehicle. It was also held that the technicality should not come in the way of Insurance Company honouring its part of contract, if the principles of indemnification of loss by insurers are considered. Accordingly the commission directed the insured in the said complaint to file the claim as per policy.<br /> 9. The facts and circumstances of the said case is applicable to this case to a great extent.<br /> 10. In this case it was the transferor Revathi in whose name the policy stands filed the claim before the National Insurance Company Ltd. So applying the principle laid by the Hon’ble National Commission in the above case the claim of Revathi should have been honoured and there fore the repudiation of the claim amounts to deficiency in service.<br /> 11. Relief & Costs. As per Ext.B2 the Surveyor assessed the loss to the tune of Rs.7186/- we do not find any reason to deviate from the findings and assessment of the surveyor.<br /> In the result complaint is allowed and the National Insurance Company is directed to honour the Own damage claim of Revathi in respect of the autorikshaw bearing Reg.No.KL-14 B/4761 and pay Rs.7186/- with 9% interest from the date of complaint along with a cost of Rs.2000/-. Time for compliance is 30 days from the date of receipt of copy of the order.<br /> Sd/- Sd/- Sd/-<br /> MEMBER MEMBER PRESIDENT<br /> Exts.<br /> B1. Copy of RC KL.14/B 4761<br /> B2. Survey Report.<br /> <br /> Sd/- Sd/- Sd/-<br /> MEMBER MEMBER PRESIDENT<br /> Pj/ Forwarded by Order<br /> <br /> SENIOR SUPERINTENDENT<br /> <br /> <br /> <br />