AJIMUDDIN vs New India Insurance Co. Ltd.

THIS appeal under Section 15 of the Consumer Protection Act, 1986, is directed against the order dated 15.3.2005 in Complaint No. 221/2004 by District Consumer Disputes Redressal Forum, Raipur (hereinafter called the "District Forum" for short) dismissing the complaint.

INDISPUTABLY, the complainant''s truck No.C.G.-15-1110 was comprehensively insured by the respondent insurer covering the risk thereof from 16.4.2002 to 15.4.2003. It is also not in dispute that during the currency of the said policy, the said vehicle met with an accident on 9.3.2003 and got damaged. Intimation was given by the complainant/appellant to the respondent/insurer upon which the latter appointed Surveyor to conduct spot survey. The final surveyor Shri S.K Sharma was also appointed, who , as per his report dated 30.5.2003 assessed the loss to the truck at Rs, 44,353. It is further not in dispute that respondent insurer repudiated the claim of the complainant/appellant by their letter dated 27.2.2004 on the ground that the complainant/appellant did not have insurable interest inasmuch as the said policy was obtained by Devendra Singh from whom the complainant/appellant purchased the vehicle, but had failed to get the policy transferred in his name. The complainant/ appellant felt aggrieved by the repudiation of his claim, and approached the District Forum, where he filed the complaint.

The complaint was resisted by the insurer mainly on the ground that the insurance policy was issued in favour of the original owner Devendra Singh and though complainant purchased the truck, he did not intimate the transfer of the vehicle in his favour by Devendra Singh and thus had no insurable interest therein.

THE ground as above for repudiation of the complainant''s claim found favour with District Forum, which held that as there was no agreement between the parties inasmuch as the complainant had not got his name recorded in the policy, he was not entitled to benefit under the policy. Learned Counsel for the parties were heard and record perused.

LEARNED counsel for the appellant submitted that GIC has issued specific instructions regarding settlement of claim in case of transfer of policy. It was submitted that as per the said instructions the transfer of policy in favour of the purchaser the complainant/appellant should be treated as automatic. It appears that the Tariff Advisory Committee issued a circular regarding automatic transfer of the policy to the new owner/ purchaser of the vehicle. In the said circular the decision of Supreme Court in Complete Insulations (P) Ltd. v. New India Assurance Co. Ltd., I (1996) CPJ 1 (SC)=II (1996) ACC 536 (SC), was referred to. In the said circular it was stated that for policies issued as per revised Motor Tariff, own damage claim which fall within the purview of GR 10 provisions may be settled in full subject to the other terms and conditions of the policy. In view of the above it is clear that GIC has recommended settlement of claim of the transferee owner notwithstanding the fact that the policy was not got transferred by him in his favour. This being so, it is clear that the complainant/appellant was entitled to the benefit under the policy. Accordingly, his claim deserves to be settled in accordance with the said instructions of the Tariff Advisory Committee. Consequently it appears that repudiation of the claim of the complainant/appellant by the respondent/ insurer was not justified. Accordingly, the complainant is entitled to get compensation under the policy. Since the surveyor has assessed the loss due to damage to the vehicle at Rs.44, 353 (rounded to Rs 44,500), we consider it just and proper to award compensation to the above extent.

ACCORDINGLY, this appeal is allowed. The impugned order dismissing the complaint is set aside. It is directed that the respondent/insurer shall pay to the complainant/appellant a sum of Rs. 44,500/: (Rupees forty-four thousand five hundered only) with interest payable thereon @ 9% p.a. from the date of the complaint. The above amount shall be payable by the respondent/insurer within two months failing which interest @ 12% p.a. shall be payable by it, from the date of default. Appeal allowed