BEFORE THE DISTRICT CONSUMER  DISPUTES REDRESSAL FORUM; FATEHABAD.

 Complaint Case No.1 of 2017.

 Date of Instt.:02.01.2017.

Date of Decision:11 .12 .2017.

Vikesh Kumar son of Devi Dayal, resident of D.S.P. Road, Fatehabad, Tehsil and District Fatehabad.

                                                                                               ..Complainant

                                               Versus

The New India Assurance Company Ltd. Branch Office, Arorvansh Dharamshala, Dharamshala Road, Fatehabad, Tehsil and District Fatehabad through it Branch Manager

         ..Respondent/OP

Before:                      Sh.Raghbir Singh, President.

                                   Sh.R.S.Panghal, Member.

Mrs.Ansuya Bishnoi, Member.

Present:                     Sh.K.K.Jangra, Adv. for the complainant.

                                   Sh.N.D.Mittal, Adv. for the OP.

ORDER

                                   The present complaint under Section 12 of Consumer Protection Act, 1986 has been filed by the complainant against the OP with the averments that the complainant had purchased a car bearing registration No.HR-22L/ 6060 from Mrs.Gitika Mehta wife of Sunil Mehta resident of House No.29-A, Model Town, Fatehabad and the above said car was insured with the OP vide insurance Policy No.35370131150100005616 valid from 20.11.2015 to 19.11.2016. The complainant submitted with the Registering Authority (MV) Fatehabad, all the requisite documents for transfer of the same in the name of complainant on 04.04.2016. It is further submitted that after purchase of the said vehicle the complainant visited the office of OP for the purpose of transfer of the insurance policy in his name and the OP sought Registration Certificate of the said car and the complainant made it clear to the OP that the Registration Certificate had been submitted with the Registration Authority, Fatehabad for transfer of the same in his name. It is further submitted that the said car met with an accident on 18.04.2016 and till then the RC of the car of the complainant was in the office of Registering Authority, Fatehabad, for the purpose of transfer of the same in the name of the complainant. The complainant informed the OP regarding the losses caused to the above said car on account of accident and the OP deputed its Surveyor who assessed the losses caused to the insured vehicle and the complainant was asked by the OP to get the same repaired and the OP assured the complainant that he will be paid the expenses to be incurred in this regard. It is further submitted that the complainant after purchase of vehicle in question has become the consumer of OP as defined in Consumer Protection Act, 1986.

2.                    It is further submitted that the complainant got the damaged vehicle repaired and painting & denting etc. of the same was also done and bill regarding the same was submitted to the OP and OP assured him that needful will be done very soon. However the OP instead of settling the claim and making payment of the expenses incurred by him repudiated the claim of the complainant vide letter dated 21.09.2016 with the remarks “Being no insurable interest”. It is further submitted that the repudiation of the genuine claim of the complainant vide letter dated 21.09.2016 is wrong, against law, against facts and based on filmsy grounds with a view to escape the liability arising out of the insurance policy. The above said act on the part of OP amounts to deficiency in rendering service to the complainant and the complainant is entitled for getting payment of Rs.1 lac along-with compensation. Hence, this present complaint.

3.                    On being served the OP appeared and resisted the complaint by filing a written statement wherein various preliminary objections; that the complainant has no locus-standi to file the present complaint; that the present complaint is false, frivolous and vexatious; that the complainant has given false and fabricated facts and has not approached to this Forum with clean hands; that there is no deficiency in service on the part of OP; that the complainant has no cause of action to file the present complaint, have been raised.

4.                    On merits, it is submitted that Smt.Gitika Mehta was the registered owner of the car in question and the same was insured with the OP for the period of 20.11.2015 to 19.11.2016. The said car was later-on purchased by the complainant and the registration certificate of the said car was transferred in the name of complainant on 04.04.2016. However after the sale of the vehicle in question neither the previous owner nor the purchaser Vikesh Kumar gave intimation to the OP regarding the sale or transfer of the said vehicle and the complainant/ purchaser also did not apply for transfer of the insurance policy in his name by depositing requisite fee within the prescribed period of 14 days as required by GR-17 of India Motor Tariff.  It is further submitted that after depositing of fee by the purchaser the endorsement regarding the same is made on the policy certificate and thereafter the insurance company becomes liable for making payment of insurance claim for the loss suffered by the transferred vehicle. In this case the accident occurred on 18.04.2016 but the complainant had applied for transfer of insurance on 28.04.2016 and endorsement of transfer was made on 13.06.2016. In view of the above the transferee Vikesh Kumar was not having insurable interest on 18.04.2016 when the accident occurred. Therefore the insurer was not liable to make good his loss under the insurance policy which was in the name of previous owner on the date of accident. It is also further submitted that on receipt of intimation of loss the OP deputed Sh.I.B.Mehta an independent Surveyor and loss assessor to assess the loss suffered by the vehicle in question. The surveyor assessed the loss as Rs.96,000/-. However the above said amount could not be paid to the complainant because the claim was repudiated on account of reasons as explained above.  It is further submitted that in view of the above said submissions the repudiation of the insurance claim of the complainant by the OP is perfectly in accordance with the terms and conditions of the insurance policy and sustainable in the eyes of law. Therefore the present complaint is without any merit and the same deserves dismissal.

5.                    The complainant produced in evidence his affidavit as Ex.CW1/A wherein the averments made in the complaint, have been re-affirmed. The complainant also tendered in evidence documents as Annexure C1 to Annexure C8 in support of his case. On the other hand, the OP tendered in evidence the documents as Annexure R1 to Annexure R10 in support of his case and closed the evidence.

6.                    The learned counsel for the complainant in his arguments reiterated the averments made in the complaint and further contended that a genuine claim of the complainant has been repudiated by the OP on a false and baseless ground. It is further contended by the learned counsel that transfer of Registration Certificate was delivered to the complainant by the office of Sub-Divisional Officer (Civil) Fatehabad on 18.04.2016 and thereafter he made an application with the OP for transfer of the insurance policy in his name on 28.04.2016. Therefore the application by the complainant was made within a period of 14 days as provided in GR.17 of India Motor Tariff Regulation. The counsel further prayed for acceptance of the complaint.

7.                    On the other hand the learned counsel for the OP rebutted the arguments advanced by learned counsel for the complainant and further contended that on the date of accident i.e. 18.04.2016  there was no previty of contract between the complainant and insurance company and as such the present complaint is not maintainable against the OP. It is further contended by the learned counsel that in the present case RC of the vehicle in question was transferred in the name of complainant on 04.04.2016. However the complainant applied for transfer of the insurance policy in his name on 28.04.2016 i.e. beyond a period of 14 days as required under GR.17 of India Motor Tariff. Therefore action of the OP in repudiating the claim of the complainant is perfectly in accordance with law and as such the present complaint is liable to be dismissed. The learned counsel for the OP in support of his contention has relied upon the judgment rendered by Hon’ble National Commission in Revision Petition No.3216 of 2015 decided on 16.08.2016 in case titled as Future Generali India Insurance Co. Ltd. Vs. Sombir and judgment rendered by Hon’ble Supreme Cour of India in case titled as Complete Insulations (P) Ltd. Vs. New India Assurance Company Ltd.  cited as 1(1996) CPJ 1(SC).

8.                    We have duly considered the arguments advanced by learned counsel for the parties, and have also examined the entire material placed on record of the present case. It is not disputed that the vehicle in question was insured with the OP and the insurance was valid from 20.11.2015 to 19.11.2016. It is also not disputed that RC of the above said vehicle was transferred in the name of the complainant on 04.04.2016. It is also not disputed that the above said vehicle met with an accident on 18.04.2016 and the Surveyor had assessed the net liability of the insurance company as Rs.96,000/-. The claim of the complainant has been repudiated by the OP only on the ground that on the date of accident i.e. 18.04.2016 there was no previty of contract between the complainant and the insurance company as on the said date the insurance of the vehicle in question was not transferred in the name of the complainant.  As per GR-17 of the India Motor Tariff Regulation, which deals with the transfer of insurance policy in case of sale of the vehicle by the original owner, the transfree 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 issued fresh Certificate of Insurance. The registration of the vehicle in question was transferred in the name of the complainant on 04.04.2016 whereas the complainant applied for transfer of the insurance in his name on 28.04.2016. In the present case since the complainant applied for transfer of insurance policy in his name, after lapse of 14 days as such the OP is not liable to make payment of compensation.

9.                    We are of the considered view that the contention of the OP that the complainant did not apply for transfer of the insurance policy to the OP within the period as stipulated in GR-17 is not tenable.  A perusal of letter dated 02.06.2017 (Annexure C-8) issued by the office of Sub-Divisional Officer (Civil) Fatehabad in reply to an information sought under the RTI Act, 2005, it is revealed that the office of Sub-Divisional Officer (Civil) Fatehabad had delivered the copy of transfer of RC to the complainant on 18.04.2016. So from the letter dated 02.06.2017 Annexure C-8 it is evident that the copy of transfer of RC in name of the complainant was delivered to the complainant on 18.04.2016 and thereafter he applied for transfer of the insurance policy in his name in the office of OP on 28.04.2016 (Annexure R-6) i.e. within a period of 14 days. We are of the considered opinion that the complainant had applied for transfer of policy in his name within the period as provided in GR.17 of India Motor Tariff Regulation. Therefore the repudiation of the claim of the complainant by the OP is not sustainable in the eyes of law and the complainant has been able to prove deficiency on the part of OP in rendering service to him. The judgments relied upon by the learned counsel for OP, are not applicable to the facts and circumstances of the present case.

10.                  Accordingly the present complaint is allowed and the OP is directed to make a payment of Rs.96,000/- as insurance claim and Rs.5,000/- as compensation on account of mental agony, physical harassment and litigation charges suffered by him. This order be complied with within a period of one month from the receipt of   copy of present order otherwise interest @ 6% per annum will have to be paid by the OP from the date of order till realization. A copy of this order be furnished/given to both the parties free of cost as provided in the rules.  File be consigned to record room after due compliance.

ANNOUNCED IN OPEN FORUM.                                                              Dt.11.12.2017       

              (Ansuya Bishnoi) (R.S.Panghal)      (Raghbir Singh)

                              Member         Member         President                                                                                    

                                                                          DCDRF, Fatehabad