IN THE KODAGU DISTRICT CONSUMER DISPUTES REDRESSAL FORUM MADIKERI

SRI. C.V. MARGOOR,PRESIDENT

O R D E R

1. This complaint filed by Mr. P.N. Chandra Prakash s/o. P.S. Nanaiah, aged 40 years, resident of Avandoor Village and Mr. Pandanda J. Naresh s/o. P.C. Joyappa, aged about 55 years, resident of Yavakapadi Village, Madikeri Taluk, Kodagu District against the opponent New India Assurance Co.Ltd., Madikeri Branch with a prayer to direct the opponent to pay a sum of Rs.2,13,715/- with interest at the rate of 18% p.a. from 21/07/2017 till realization, to pay a sum of Rs.25,000/- as compensation and cost of this proceedings.

2. The first complainant has purchased Mahindra Bolera Jeep bearing registration No.KA 12 P 7962 from the second complainant and the registration certificate has transferred in his name with effect from 07/09/2016.

3. That on 22/09/2016 at about 7-30 a.m. the aforesaid vehicle met with an accident because of tyre skid at Karugunda, Madikeri Taluk and the vehicle was severally damaged.  The vehicle was brought by toeing to workshop at Mysore for repairs.  The complainant has spent total sum of Rs.2.13.715/- towards fittings and painting, spare parts, glasses and toeing charges.  The insurance certificate of the said vehicle was stood in the name of the second complainant as on the date of accident.  However on 27/06/2017 the second complainant on behalf of the first complainant submitted claim before the opponent and the later vide their letter dated 21/07/2017 rejected the claim on the ground that the insurance policy was not transferred in the name of the first complainant within 14 days from the date of transfer of R.C.  It is the contention of complainant that on the date of accident the said vehicle was insured with the opponent and the policy was in force.  Therefore, the repudiation of the claim made by the opponent is improper and illegal.  Hence, this complaint.

4. After the service of notice the opponent put in appearance through its learned counsel and resisted the case of complainant by filing written version.  The opponent admitted that it has issued insurance policy in respect of the vehicle bearing registration no.KA12 P 7962 covering the period from 21/02/2016 to 20/02/2017.  The policy was issued in the name of second complainant Pandanda J. Naresh the registered owner of the said vehicle.  The opponent after receiving the claim intimation has deputed competent Surveyor to inspect the vehicle in question and assess the loss.

5. It is the contention of opponent that on perusal of the papers, RC of the vehicle was transferred in the name of the first complainant on 07/09/2016, but the policy was not transferred within 14 days from the date of transfer of the vehicle.  The alleged accident took place on the 15^th day of the date of transfer of RC as such there is no insurable interest with the complainant.  The alternative contention of the opponent is that in case it is liable to pay any amount the surveyor assessed the net loss at Rs.88,330/- as such the complainant is not entitled for any amount more than the assessment made by the Surveyor.  The last contention of opponent is that there is no deficiency of service on the part of this opponent as such repudiation is proper.

6. The first complainant P.N. Chandra Prakash filed his affidavit in lieu of evidence and got marked exhibits P1 to P6 documents.  On behalf of opponent Smt. Yeshoda K.B. w/o.Dr. Bolka, Assistant Manager, Working at Madikeri Branch filed affidavit in lieu of oral evidence and got marked exhibits R1to R6 documents.

7. The learned counsel for the complainant and opponent have submitted their written arguments and the points that would arise for determination are as under;

1. Whether the complainants prove that the repudiation of claim made by the opponent is illegal and improper?

2. Are complainants entitled to the relief sought for?

3. To what order?

8. Our findings on the above points is as under;

• Point No.1:- In the Negative
• Point No.2:- In the Negative
• Point No.3:- As per final order for the below

R E A S O N S

9. Point No.1 to 3 :- The learned counsel for the complainants submits that on the date of accident though the name of complainant No.1 was not transferred in the insurance policy records but the policy was in force.  As against this the learned counsel for the opponent urged that RC was transferred in the name of complainant no.1 on 07/09/2016 but the policy was not transferred in his name within 14 days from the date of transfer of RC of the vehicle.  The alleged accident took place on the 15^th day from the date of transfer of RC.  Therefore, the complainant No.1 has no insurable interest with the vehicle.

10. The opponent insurance company has admitted all most all the facts narrated by the complainants namely purchase of Mahindra vehicle bearing registration No.KA 12 P 7962 and transfer of RC in the name of complainant No.1 with effect from 07/09/2016.  The opponent has not disputed the alleged accident said to have taken place on 22/09/2016 within the limits of Madikeri Taluk and damage to the vehicle.  The sole contention of opponent is that the insurance policy was not transferred in the name of complainant within 14 days from the date of transfer of the vehicle and the accident took place on the 15^th day of the date of transfer of RC as such there is no insurable interest with the complainant no.1 on the date of accident.  The opponent learned counsel in support of their argument relied upon the case of New India Assurance Company Ltd v/s Chandrakant Jogdand II (2010) CPJ 170 (NC).  In the above citation under Section 21(b) of Consumer Protection Act, Section 157 of Motor Vehicles Act, 1988 and General Regulation 17 of the Indian Motor Tariff Act held that vehicle on date of accident stood in name of previous owner, transferee has to apply in writing within 14 days from date of transfer to the insurer for making necessary changes.  As per Apex Court ruling in case of Complete Insulations Pvt. Ltd. v/s New India Assurance Company Ltd. I (1996) CLT 22(SC)=(1996)1 SCC 221 that deemed transfer of policy under Section 157 of Motor Vehicles Act, 1988 restricted to third party risk, does not apply to other risks.  Complainant not entitled to insured sum since on date of accident vehicle not transferred in favour of complainant.  Complainant had no insurable interest in policy.  Orders allowing complaint suffer from illegality, set-aside in revision.

11. Section 157 of Motor Vehicles Act, 1988 deals with 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.

Explanation- For the removal of doubts, it is hereby declared that such deemed transfer shall include transfer of rights and liabilities of the said certificates of insurance and policy of insurance.

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.

12. The Apex Court in the case of New India Assurance Company v/s Smt. Sheela Rani and others  AIR 1999 SC 56 held that it is only in respect of third party risk that Section 157 of the Vehicle 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 example damage caused to the vehicle of the insured himself that would be a matter falling outside chapter XI of the 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.  When there is no such agreement and the insurer had not transferred the policy of insurance in relation there to the transferee, the insurer is not liable to make good the damage to the vehicle.

The decisions laid down by the Hon’ble Supreme Court show that unless the policy is transferred in the name of purchaser of the vehicle from previous owner within 14 days from the date of transfer of RC he is not entitled for compensation from the insurance company to make good the damage to the vehicle.In the case on hand admittedly RC was transferred in the name of complainant No.1 on 07/09/2016 but policy was not transferred within 14 days from the date of transfer of RC as per Section 157 of M V Act and law laid down by the Apex Court.But the accident has took place on the 15^th day from the date of transfer of RC as such there was no agreement or undertaking by the insurer to the first complainant to pay the damages to the vehicle though the policy was in force.In view of the above discussion, the repudiation of the claim made by the opponent is legal.Therefore, there is no deficiency in service on the part of opponent.In the result, we proceed to pass the following;

O R D E R

1. The complaint filed by Mr. P.N. Chandra Prakash s/o. P.S. Nanaiah and another fails hence, it is dismissed.
2. In the facts and circumstances of the case, parties shall bear their own cost.
3. Furnish copy of order to the complainants and opposite party at free of cost.

(Dictated to the Stenographer, got it transcribed, corrected and pronounced in the open Forum on this 02^ndday of MARCH, 2019)

                                                      (C.V. MARGOOR)

                                                          PRESIDENT 

                                                    (M.C. DEVAKUMAR)

                                                             MEMBER