NATIONAL INSURANCE CO. LTD. Vs. LAKSHMI AND OTHERS

JUDGEMENT

(1.) THIS appeal is by the Insurance Company challenging the judgment and award dated 13,9.1995 on the file of the Motor Accident Claims Tribunal, Bangalore, in MVC No. 1203/1991.

(2.) THIS appeal is by the Insurance Company. The main contention raised by the Insurance Company in this case is that the policy that was issued in favour of G.N. Druva Kumar was for a period from 15.6.1990 to 14.6.1991. During this period the vehicle was transferred in favour of one Sayed Khasim with effect from 10.12.1990 and the said Syed Khasim in turn sold the vehicle in favour of M. Basavaraj on 14.1.1991.

(3.) FROM a reading of the above section it is clear that Sub -section (2) of Section 157 of the Act provides only a procedure to intimate the fact of transfer of vehicle, to the insurer, in order to make necessary changes in the Certificate of Insurance and the policy to bring it in conformity with the deemed transfer as contemplated under Section 157(1) of the Act for the purpose of indemnifying the transferee relating to the risk covered under the policy. Non compliance with this procedure does, not automatically invalidate the deemed transfer that had taken place by virtue of operation of law as contemplated under Sub -section (1) of Section 157 of the Act. Therefore, there is no substance in the contention raised by the Insurance Company.