National Insurance Co Ltd Vs Mohinder Singh - Citation 1112276 - Court Judgment

Judgment:

K.C. Gupta, President:

1. This appeal has been directed by OP No. 2 against order dated 18.4.2006 passed by District Consumer Disputes Redressal Forum-I, U.T., Chandigarh (hereinafter to be referred as District Consumer Forum) vide which the complaint of Sh. Mohinder Singh-respondent was accepted with costs of Rs. 1,100 and appellant and OP No. 1 (as mentioned in the complaint) were directed to pay Rs. 85,132 along with interest @ 7% p.a. from the date of repudiation of the claim i.e. 17.11.2004 till payment.

2. Briefly stated the facts are that respondent (complainant) purchased Maruti Car (ZEN) LXI bearing No. CH-03-K-5552 in the name of her daughter-in-law Smt. Harbinder Kaur. It was got insured with the National Insurance Company Limited i.e. OP No. 1 (as mentioned in the complaint) vide policy No. 7421176 which was valid from 28.2.2004 to 27.2.2005, the copy of insurance policy is Annexure C-1. Later on Smt. Harbinder Kaur sold the said car in favour of the respondent and it was duly transferred in his name and the copy of the registration certificate is Annexure C-2. Unfortunately the said vehicle met with an accident on 12.10.2004 and sustained extensive damage.

3. It was next averred that the respondent lodged claim with the National Insurance Company Limited on 3.11.2004 vide claim application, whose photocopy is Annexure C-3. However, the National Insurance Company Limited repudiated the claim vide letter dated 17.11.2004 on the ground that the insurance policy had not been transferred in the name of the respondent and as such he has no insurable claim.

4. Alleging deficiency in service, the complaint was filed for indemnification of loss to the tune of Rs. 87,132 along with interest @ 18% p.a. He also claimed Rs. 50,000 as compensation on account of harassment, etc., besides Rs. 5,000 as costs of litigation.

5. The appellant and respondent No. 1 (as mentioned in the complaint) contested the complaint and stated that the respondent had no insurable interest as the car was sold to him in February, 2003 and the insurance of the car was not got transferred in his name within the stipulated period of 14 days from the transfer of the car as per G.R. 17 of the India Motor Tariff Claim. They also stated that there was no privity of contract between the new buyer and the National Insurance Company Limited. Therefore, the claim was not maintainable.

6. The parties adduced their evidence by way of affidavits.

7. The District Consumer Forum-I, U.T, Chandigarh vide order dated 18.4.2006 after hearing the Counsel for the parties accepted the complaint with costs as stated in the earlier part of the judgment.

8. Aggrieved by the said order, the OP No. 2 has filed the present appeal.

9. We have heard the learned Counsel for the appellant Sh. Paul. S. Saini, Counsel for the respondent (complainant) Sh. Gaurav Bhardwaj and carefully gone through the file.

10. It is an admitted fact that Maruti Car (ZEN) LXI bearing registration No. CH-03-K-5552 was in the name of Smt. Harbinder Kaur. The insurance policy was also in her name which was effective for the period commencing from 28.2.2004 to 27.2.2005. A perusal of the copy of the registration certificate Annexure C-2 shows that the registration was transferred in the name of Sh. Mohinder Singh (complainant) on 6.3.2003. Admittedly, the car met with an accident on 12.10.2004. Later on the respondent had applied for transfer of the insurance policy in his name vide letter dated 17.11.2004. Along with the letter he sent a letter of consent from the previous owner i.e. Smt. Harbinder Kaur and a demand draft of Rs. 50 dated 17.11.2004. The said documents are Annexures C-4 to C-6. Accordingly, the policy was duly transferred in the name of the respondent vide letter dated 6.12.2004 covering risk factor from 28.2.2004 to 27.2.2005. The photocopy of the same is nnexure C-7. The Annexure C-7 reads as under :

NATIONAL INSURANCE COMPANY
Div. No. 10, Flat No. â 101-106
N-1, BMC House,
Connaught Place, New Delhi-110001
Tel. : 011-51523362/63 Fax : 011-23326384
Endorsement Certificate
âEndorsement Schedule
Endorsement No.	7421176/12062004/1	Endorsement	06 Dec. 2004
Â	Â	Date	11.26.49
Policy No.	7421176	Policy Type	Package Policy
Risk Inception	28 Feb-2004	Risk	27 Feb.
Date	Â	Expiry Date	2005
Insured Name	HARBINDER KAUR	Â	Â
Insured Address	H.No. B-191, KENDRIYA VIHAR, SECTOR 48-B	Â	Â

At the request of the insured, it is hereby declared and agreed that the following items under the withstanding policy has been changed/allotted.

Notwithstanding anything herein to the contrary contained, at the request of the insured, it is hereby declared and agreed that under the within mentioned policy.

THE CORRECT

1. NAME OF INSURED IS Mr. MOHINDER SINGH

2. CORRECT GENDER IS MALE

and not as stated therein.

Subject to fulfilment of conditions, if any, mentioned in remarks

For and on behalf of

National Insurance Company

Sd/- Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Sd/-

Authorised Signatory Â Â Â Â Â Â Â Â Â Â Â Â Â Authorised Signatory

Remarks : RS. 50 HAS BEEN DEPOSITED MUL SLIP NO. 7018774.â

11. Therefore, the respondent had no insurable interest when the accident took place or when the claim was rejected vide letter dated 17.11.2004. However, later on the insurance policy was transferred in the name of the respondent on 6.12.2004 before lunch covering risk from 28.2.2004 to 27.2.2005. Hence, at the time of filing the complaint, the respondent had insurable interest. It is true that according to G.R. 17 of the India Motor Tariff Claim, the insurance of the car is required to be transferred within 14 days from the date of purchase of the vehicle from one person to another. The respondent had definitely applied for transfer of the insurance policy in his name at a late stage i.e. on 17.11.2004 when his claim was rejected, along with a sum of Rs. 50 as required under law and consent letter of the previous owner i.e. Smt. Harbinder Kaur. It is not the case where the appellant had rejected the transfer of the insurance policy in favour of the respondent by stating that since he had not applied within 14 days from the date of purchase of the vehicle, so under G.R. 17 of the India Motor Tariff Claim, he is not entitled for transfer of the insurance policy. On the other hand, it is a case where the appellant had transferred the policy in the name of the respondent covering the risk from 28.2.2004 to 27.2.2005. Once the appellant had transferred, the policy without any objection in favour of the respondent on 6.12.2004 before lunch covering the risk as stated above. Then it is to be presumed that the respondent had insurable interest on the day of accident i.e. 12.10.2004. Insurance policy is bilateral contract. Once the appellant had conceded that the insurance policy was valid from 28.2.2004 to 27.2.2005 in favour of the respondent, then the National Insurance Company Limited cannot repudiate or refuse the claim of the respondent. We agree with the reasoning given by the District Forum.

12. Therefore, in view of the discussion above, we hold that there is no force in the appeal and, as such, the same is dismissed with costs of Rs. 1,000.

13. Copies of this order be sent to the parties free of charge.

Court	Union Territory Consumer Disputes Redressal Commission UT Chandigarh
Decided On	Sep-26-2006
Case Number	Appeal No. 328 of 2006
Judge	K.C. GUPTA, PRESIDENT, THE HONOURABLE MR. MAJ. GEN. S.P. KAPOOR, MEMBER & THE HONOURABLE MRS. DEVINDERJIT DHATT, MEMBER
Appellant	National Insurance Co. Ltd.
Respondent	Mohinder Singh

National Insurance Co. Ltd. Vs. Mohinder Singh - Court Judgment