NEW INDIA ASSURANCE CO. LTD vs ASHOK THAKUR

THIS revision petition has been filed by the petitioner against the order dated 26.5.2008 passed by State Consumer Disputes Redressal Commission, UT, Chandigarh (in short, ''the State Commission '') in Appeal No. 759 of 2008 - New India Assurance Co. Ltd. Vs. Ashok Thakur by which, while dismissing appeal, order of District Forum allowing complaint was upheld.

BRIEF facts of the case are that complainant/respondent purchased vehicle CH -03C -9762 from Shri Avtar Singh and got registration certificate transferred in his name on 13.6.2006. Vehicle was insured by OP/petitioner for a period from 6.9.2005 to 5.9.2006. Complainant approached OP on 18.6.2006 for transfer of insurance policy in his name along with all documents, but the same was not done and Sr. Branch Manager of OP told him that vehicle should be brought along with documents. On 25.6.2006, vehicle met with an accident and vehicle was damaged. Complainant submitted claim which was repudiated by OP. Alleging deficiency on the part of OP, complainant filed complaint before District Forum. OP resisted complaint and submitted that as no policy was issued in favour of the complainant and as there was no privity of contract between the complainant and OP, OP was not liable to pay any compensation as per India Motor Tariff Rules and prayed for dismissal of complaint. Learned District Forum after hearing both the parties, allowed complaint and directed OP to pay Rs.59,900/ - + Rs.2145/ - as survey fee along with interest @ 9% p.a. and further awarded cost of Rs.2,500/ -. Appeal filed by the petitioner was dismissed by learned State Commission vide impugned order against which, this revision has been filed. Heard learned Counsel for the parties and perused record.

LEARNED Counsel for the petitioner submitted that as policy was not transferred in the name of respondent on the date of accident and as there was no privity of contract between the parties, the petitioner has not committed any deficiency in repudiating the claim and learned State Commission has committed error in dismissing appeal and learned District Forum committed error in allowing complaint; hence, revision petition be allowed and impugned order be set aside. On the other hand, learned Counsel for the respondent submitted that order passed by learned State Commission is in accordance with law, which does not call for any interference; hence, revision petition be dismissed.

IT is not disputed that respondent purchased vehicle from Shri Avtar Singh and registration certificate was transferred in the name of respondent on 13.6.2006. It is also not disputed that vehicle was insured in the name of Shri Avtar Singh by the petitioner for a period from 6.9.2005 to 5.9.2006. It is also not disputed that vehicle met with an accident on 25.6.2006. Now, the main question is whether insurance policy stood transferred in the name of respondent on the date of accident or whether he applied for transfer within a period of 14 days. As per India Motor Tariff Rules applicable from 30.6.2002, insurance policy was required to be transferred in the name of transferee on damages of the vehicle. GR 17 runs as under: ''''GR.17. Transfers On transfer of ownership, the Liability Only cover, either under a Liability Only policy or under a Package policy, is deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of transfer. The transferee 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 issue fresh Certificate of Insurance. In case of Package Policies, transfer of the ''''Own Damage '''' section of the policy in favour of the transferee, shall be made by the insurer only on receipt of a specific request from the transferee along with consent of the transferor. If the transferee is not entitled to the benefit of the No Claim Bonus (NCB) shown on the policy, or is entitled to a lesser percentage of NCB than that existing in the policy, recovery of the difference between the transferee ''s entitlement, if any, and that shown on the policy shall be made before effecting the transfer. A fresh Proposal Form duly completed is to be obtained from the transferee in respect of both Liability Only and Package Policies. Transfer of Package Policy in the name of the transferee can be done only on getting acceptable evidence of sale and a fresh proposal form duly filled and signed. The old Certificate of Insurance for the vehicle, is required to be surrendered and a fee of Rs.50/ - is to be collected for issue of fresh Certificate in the name of the transferee. If for any reason, the old Certificate of Insurance cannot be surrendered, a proper declaration to that effect is to be taken from the transferee before a new Certificate of Insurance is issued. ''''

PERUSAL of GR.17 clearly reveals that respondent was entitled to ''on damages '' of the vehicle only if he had applied for transfer of insurance policy in his name within 14 days from the date of transfer of registration certificate in his name. Perusal of record reveals that respondent applied for transfer of insurance policy in his name on 30.6.2006, whereas accident had already taken place on 25.6.2006. As the respondent did not apply for transfer of insurance policy in his name within 14 days from the date of transfer of registration certificate, petitioner has not committed any deficiency in repudiating claim.

LEARNED State Commission has referred Annexure C -2/A dated 18.6.2006, but the respondent has not placed that document on record. Not only this, as per averments of the complaint when respondent approached to the petitioner on 18.6.2006 along with Annexure C -2/A, he was asked to present the vehicle for further action. Admittedly, respondent did not produce vehicle on that date. In such circumstances, it cannot be presumed that on 18.6.2006, respondent applied for transfer of insurance policy in his name along with all necessary formalities and it can very well be said that first time respondent applied for transfer of insurance policy on 30.6.2006. Learned Counsel for the petitioner placed reliance on judgment of this Commission delivered on 21.2.2013 in R.P. No. 3502 of 2009 - New India Assurance Co. Ltd. Vs. Shaik Dawood & Anr. in which while discussing GR.17 and judgement of Apex Court, it was observed as Under: ''''Similarly, three members Bench of this Commission in the case of Madan Singh Vs. United India Insurance Co. Ltd. and Anr. - 1 (2009) CPJ 158 (NC), after considering the entire facts of the case, has held that in the case of own damage, unless and until the policy is transferred in the name of new owner, insurance company is not liable to indemnify the loss. In view of the provisions of the Motor Vehicles Act and the Tariff Regulations and the decisions of the Supreme Court, if the transferee fails to inform the Insurance Company about transfer of the Registration Certificate in his name and the policy is not transferred in the name of the transferee, then the Insurance Company cannot be held liable to pay the claim in the case of own damage of vehicle. Petitioner Insurance Company was justified in repudiating the claim ''''.

In the light of aforesaid judgment it becomes clear that petitioner has not committed any deficiency in repudiating the claim. Learned Counsel for the respondent has placed reliance on judgment of this Commission delivered on 22.5.2007 in R.P. No. 556 of 2002 - Shri Narayan Singh Vs. New India Assurance Co. Ltd. in which in similar circumstances, Insurance Company was held liable. This judgment is not applicable to the facts of the present case because in that case accident took place in 1995 and case was decided on the basis of old India Motor Tariff Regulations whereas old Tariff Regulations have been replaced by new India Motor Tariff Rules applicable from 30.6.2002.

CONSEQUENTLY , revision petition is allowed and impugned order dated 26.5.2008 passed by learned State Commission in Appeal No. 759 of 2008 - New India Assurance Co. Ltd. Vs. Ashok Thakur is set aside and complaint stands dismissed with no order as to costs.