NATIONAL INSURANCE CO LTD Vs. SUDHEESH

JUDGEMENT

(1.) This appeal is preferred by National Insurance Co. Ltd. against the award passed by the Motor Accidents Claims Tribunal, Pala in O.P. (MV) No. 554 of 2006. By virtue of the award the claimant was awarded a sum of Rs. 39,150 and National Insurance Co. Ltd. was directed to deposit the amount. Contention of the insurance company is to the effect that the vehicle involved in the accident was insured with the additional respondent No. 4 on the date of accident by virtue of a comprehensive policy and, therefore, it is liable to pay the amount. The learned Tribunal held that the policy issued by the appellant would be deemed to have been transferred and, therefore, the said insurance company cannot get exon-erated from the liability.

(2.) The few facts necessary are that the appellant had issued a policy in the name of one Sudheeran and the said Sudheeran had sold the vehicle on 15.5.2005 in favour of one Jijo Thomas and the said Jijo Tho-mas had taken a policy from respondent No. 4 for a wider coverage. The said policy is valid for the period from 27.5.2005 to 26.5.2006. The accident took place on 30.9.2005. Now the contention is that since appellant insurance company has issued a policy in the name of the previous owner by virtue of the statutory fiction under sec-tion 157 (1) of the Motor Vehicles Act, it should have been deemed to be transferred in favour of the purchaser and, therefore, the said insurance company cannot claim exoneration of the liability.

(3.) On the other hand, learned counsel for the appellant would contend before me that it is true that the vehicle had been transferred. Subsequent to the transfer and before the accident, the owner of the vehi-cle had taken a policy from the respondent No. 4 and the said policy was in force dur-ing the period of accident. So the question is what will be the impact of section 157 of Motor Vehicles Act and the subsequent issuance of the policy by the respondent No. 4. Section 157 of the said Act was introduced by Amendment Act of 1989 and as per the said provision, when the vehicle is transferred, there is a deemed transfer of the policy as well and section 157 (2) envisages a situation that the transferee has to apply to the insurance company for a transfer of the policy.