Tripura

West Tripura

CC/76/2015

Sri Gourdas Modak. - Complainant(s)

Versus

United India Insurance Company Ltd. - Opp.Party(s)

Mr.K.Deb, Mr.S.Banik, Mr.S.Saha.

17 May 2016

ORDER

DISTRICT CONSUMER DISPUTES REDRESSSAL FORUM
WEST TRIPURA  :  AGARTALA

CASE   NO:   CC- 76  of  2015

Gourdas Modak,
S/O- Lt. Narendra Ch. Modak,
Malaynagar, Renters Colony,
P.S. Srinagar, Agartala,
District- West Tripura.             .….…...Complainant.

VERSUS

United India Insurance Company Ltd.,
Agartala, Divisional Office,
GRs. Towers 1st Floor,
R.M.S. Chowmuhani, Agartala,
P.S. West Agartala, 
District- West Tripura.            ............Opposite parties.
   
      __________PRESENT__________

 SRI A. PAL,
PRESIDENT,
  DISTRICT CONSUMER  DISPUTES REDRESSAL FORUM,
      WEST TRIPURA, AGARTALA. 

SMT. Dr. G. DEBNATH
MEMBER,
  DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, 
  WEST TRIPURA,  AGARTALA.

C O U N S E L

For the Complainant        : Sri Kushal Deb,
                      Sri Sagar Banik,
                      Sri Saikat Saha,
                      Advocates.

For the O.P.                 : Sri P. Goutam,
                      Advocate.

        JUDGMENT  DELIVERED  ON: 17.05.2016

J U D G M E N T 
        One Gourdas Modak  filed this complaint U/S 12 of the Consumer Protection Act alleging the deficiency of service by O.P. United India Insurance Company Ltd. Case of the complainant is that he insured his vehicle with the United Insurance Company Ltd. with a package policy on 25.06.14. The vehicle met with an accident on 25.09.14. The policy was valid up to 25.06.15. So he filed application for insurance claim on 28.07.14. The surveyor assessed loss Rs.80,000/- this estimate cost was prepared for Rs.1, 88,485/- but the claim of the complainant was repudiated on the ground that ownership in the name of complainant was not transferred and also certificate also not transferred in the name of the complainant. 

        O.P. United India Insurance company appeared and filed W.S.  The contention of the United Insurance India Insurance Company is that the accident took place on 25.07.14. On that date Insurance policy was in the name of Balaram De though owner ship was transferred to Gourdas Modak on 03.07.14. The accident took place before 14 days from the date  of transfer of ownership. Insurance policy was in the name of Balaram De  as issued on 12.12.14. Gourdas Modak Transferee shall apply within 14 days from the date of transfer in the prescribed form with the insurer  for making necessary change in regard to the fact of transfer in the Insurance policy certificate. That was not done. So, Insurance company has no liability. Accordingly, the claim was repudiated.

        On the basis of contention raised by both the parties following points cropped up for determination.
        (I) Whether for the failure to apply within 14 days from the date of transfer to the insurance company for making necessary change in the insurance policy certificate the policy will be invalid?
        (II) Whether the petitioner is entitled to get the benefit as per terms of the policy and also compensation as claimed?

        The petitioner Gourdas Modak produced sale agreement certificate, surveyor report, letter, package policy in the name of Balram Dey, G.D. Entry, information of the accident to United India Insurance Company, letter to get the documents marked as Exhibit- 1 series. 
        Petitioner side also examined 2 witness one is Gourdas Modak, complainant and  Balram Dey, original owner of the vehicle who transferred it to the complainant.
        
        O.P. on the other hand produced the photocopy of assessment report, survey report, certificate of registration which are marked as exhibit 1 series.
        O.P. also examined Ashis Kr. Bakta assistant officer of the United India Insurance Company Ltd.
        
        On the basis of all these evidence we shall now determine the above points.

            Findings and decision:
        It is admitted and established fact that the vehicle was covered by insurance policy certificate. It covered own damage claim. Policy was purchased in the name of Balaram Dey. Petitioner Gourdas Modak placed the demand in respect of cost of repairing of the vehicle covered by insurance policy. O.P. Insurance company by letter dated 06.02.15 informed that as the certificate of insurance has not been transferred in the name of new owner Gourdas Modak at the time of accident on 25.07.14. Therefore company is not liable to satisfy the claim of the petitioner. So, in this case the only contention is about the transfer of ownership of the vehicle TR 01 X 1609 which met the accident. The period of insurance was 26.06.14 to 25.06.15. Accident occurred on 25.07.14 when the policy was alive. But the vehicle was insured in the name of Balram De not in the name of the complainant Gourdas Modak. 
        Learned advocate for the O.P. Mr. P. Goutam  placed his reliance from the decision of the Supreme Court AIR   1996 SCC(1) Page- 221. Relying on the judgment passed by the Supreme Court learned advocate argued that as per section 157 of the Motor Vehicle Act the certificate of insurance is deemed to have been transferred in favour of the person to whom the vehicle is transferred but the said provision applied only in relation to 3rd party risk and will not apply to the policy covering the risk or damage to the vehicle or person of the insured. He argued that as per section 157 sub clause 2 the transferee shall apply within 14 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 policy described in the certificate in his favour. If it is not done the policy shall be lapsed. 
        Learned advocate also referred the decision of State Consumer Redressal Forum, Maharastra. The order passed on 19.06.13. In that case State Forum viewed that when the owner failed to submit application for transfer of Insurance policy in his name as per motor tariff Act the policy has no force. 
        
        Learned advocate for petitioner on the other hand referred the decision of National Consumer Dispute Redressal Commission in revision petition No- 556(2002) another revision petition 518(2008). 
        In the decision in Revision Petition No-518(2008) National Commission viewed that on the transfer of the vehicle benefits under the policy in force will automatically be passed to the new owner. In that case National Commission viewed as follows;
        'It appears in a number of cases Insurance company are suppressing this regulation and take undue advantage and contend with all force that as the Insurance policy was not transferred in favour of new purchaser Insurance company are not liable to reimburse the insurers of the transferees of the vehicle because the transferees were not having  insurable interest.'
        We have heard the arguments as placed before us. Gone through the relevant provision. The circular issued in the year 1994 by General Insurance Company is very relevant. As per section 157 of the Motor Vehicle Act the certificate of Insurance is deemed to have been transferred in favour of the person to whom the vehicle is transferred. On transfer of vehicle the benefits under the policy in force will automatically accrued to the new owner. The bonus malus already applicable for the policy would continue until the expiry of the policy. If the transferee wants to transfer the policy in his name it may be done on getting evidence for sale and proposal form duly completed. But if he fails to do so within 14 days then the transfer will not be invalid. If the transfer remained valid then as per section 157 of the M.V Act all interest of the transfer including the insurable interest automatically will be vested to the new owner ie., transferee. Nothing found in the section 157 to support that only 3rd party interest only will be protected in application of these section. On the transfer of the vehicle the certificate of insurance policy deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of transfer. These principles is laid down by the decision of the National Consumer Disputes Redressal Commission in the Judgment passed on 29.02.2008 and on 22.05.07. Section 157 of the new Act did not confine itself on the 3rd party risk. So we do not agree with the contention raised by learned advocate for O.P. that in such a case only 3rd party risk is covered. It is true that no fresh agreement was executed between the new owner and the Insurance company to cover 3rd party or 1st party. The coverage is already enforced through the policy executed  by old owner of the vehicle. The policy as per deeming provision was transferred with all benefits. We therefore, hold that the insurance policy certificate purchased by Balaram De was transferred to complainant Gourdas Modak. The vehicle was purchased on 27.06.14 as stated by Gourdas Modak and just after one month 25.07.14 it met accident. The petitioner stated that on 3.07.14 ownership of the vehicle was transferred in his name. Insurance Company appointed surveyor for assessing the loss. Thus it  intended to pay surveyor estimated cost of repairing which amounts to Rs.1,98,485/-. The petitioner claimed Rs.4,20,000/- as compensation. P.W.2, Balaram Dey stated that complainant submitted application to the transport authority to change the ownership meanwhile the accident occurred on 25.07.14. O.P. witness, O.P.W.1 stated that up to 04.07.14 Balram De was the owner. Accident occurred on 25.07.14 during this period from 04.07.14 to 25.07.14 complainant did not apply for change of policy certificate. We have gone through the survey report. The damage is assessed at Rs.80,000/-by the surveyor. Another survey report also filed. The estimated cost there  written is Rs.49,000/-. From the insurance policy certificate it is found that the coverage of the policy was for Rs.7 lakhs. Petitioner produced the sale certificate. Balaram De himself admitted about the sale of the vehicle to the complainant. Petitioner produced cost of some parts for Rs.4,81,990/-. This is not survey report. So, we shall have to depend upon the survey report of the insurance company. It amount to Rs.80,000/- in total Rs.1,29,000/-. This was actually the cost of damage which petitioner was entitled to get. The claim of the petitioner was not entertained by the United India Insurance company Ltd. The claim was rejected on the ground that the policy was not transferred in the name of the complainant and such application was not made within 14 days.  But as per section 157 of the M.V Act the benefits of policy will be automatically transferred. Failure to apply within 14 days will not invalidate the transfer of the benefits accrued on it. 

        The 1st party is not barred to put forward its claim in case of damage of the own vehicle. We therefore, hold that the transfer was valid. Insurable  interest was transferred to the complainant and he is entitled to get the cost of repairing of the damage of vehicle Rs.1,29,000/-. He is also entitled to get Rs.25,000/- as compensation for deficiency of service by United India Insurance company. United India Insurance company failed to give proper relief in time to the petitioner and the valid claim was repudiated improperly. It is deficiency of service. For that petitioner is entitled to get compensation  of Rs.25,000/- and Rs.10,000/- as cost of litigation. Both the points are decided accordingly. 

        In view of our above findings over the two points this petitioner is partly allowed. We direct United India Insurance company O.P. No.1 to pay Rs.1,29,000/- with cost of repairing of the vehicle. We also direct Insurance company to pay Rs.35,000/- as compensation and litigation cost. Total amount thus stands Rs.1,64000/- Amount is to be paid within 2 months if it is not paid it will carry interest @ 9% P.A.   
  
     
                      Announced.

 

SRI A. PAL
PRESIDENT,
DISTRICT CONSUMER  DISPUTES 
REDRESSAL FORUM,
WEST TRIPURA,  AGARTALA.

 

SMT. DR. G. DEBNATH,
MEMBER,
 DISTRICT CONSUMER DISPUTES 
REDRESSAL FORUM, 
WEST TRIPURA, AGARTALA