UNITED INDIA INSURANCE CO LTD Vs. MANGIT KAUR

JUDGEMENT

(1.) This appeal has been filed by the appellant insurance company against the award of the Motor Accidents Claims Tribunal, Sirsa, dated 1.10.1999 awarding a sum of Rs, 1,64,000 as compensation to the heirs of the deceased Satnam Singh, who had died in a motor accident on 18.9.1997. The accident involved a Maruti car bearing registration No. KBE 6009 and driven by the owner Yogesh Kumar Sharma which hit the deceased Satnam Singh who was riding on his bicycle. On a consideration of the oral and documentary evidence, the Tribunal found that the car was being driven at a very high speed in a rash and negligent manner and in an attempt to overtake a truck, it had struck the bicycle of the deceased on the left side of the road. This resulted in the death of Satnam Singh on the spot. The Tribunal awarded a sum of Rs. 1,64,000 as compensation to the legal heirs of the deceased.

(2.) The only ground agitated before us by the insurance company is that the owner Yogesh Kumar Sharma had purchased the car from M/s. Khem Chand Hem Raj along with the insurance policy. However, as required under the provisions of subsection (2) of section 157 of the Motor Vehicles Act, 1988 (for short 'the Act'), he had not applied for the transfer of the certificate of insurance in his name within the stipulated period of 14 days. It was, therefore, contended that there was no privity of contract between him and the insurance company and as such, the insurance company could not be held liable to indemnify him against the compensation awarded by the Tribunal.

(3.) To resolve the matter, it is necessary to take note of the provisions of section 157 of the Act which read as under: "157. Transfer of certificate of insurance. (1) Where a person in whose favour the certificate of insurance has been issued in accordance with the provision of this Chapter transfers to another person the ownership of the motor vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer. Explanation. For the removal of doubts, it is hereby declared that such deemed transfer shall include transfer of rights and liabilities of the said certificate of insurance and policy of insurance. (2) The transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance and the policy described in the certificate in his favour and the insurer shall make the necessary changes in the certificate and the policy of insurance in regard to the transfer of insurance."