NEW INDIA ASSURANCE COMPANY LTD Vs. SHEELA RANI

JUDGEMENT

(1.) THIS Special Appear under Sec. 18 of the Rajasthan High Court Ordinance has been filed against the judgment of learned Single Judge dated September 3, 1986 whereby the award passed by the Motor Accident Claims Tribunal, Jaipur, dated 18 2. 1982 in claim case No. 291/77 was modified.

(2.) BRIEF facts giving-rise to the present appeal are that a claim petition for compensation on account of death of Moti Lal husband of respondent No. 1 and father of respondent No. 2 due to accident that occurred on 10. 5. 1977 at Jaipur while the deceased was going on his Suvega auto-cycle, was filed. It is alleged that the accident took place on account of rash and negligent driving of Fiat Car, which was at the relevant time driven by respondent No. 5.

(3.) THE case of Shanti Lal Mohan Lal Vs. Ahir Bawanji Malde (3) was a case in which the ownership of the vehicle was transferred on 2 3. 78, which met with an accident on 5. 3. 78. Neither any intimation of the transfer was given to the insurer nor its consent was obtained. THE change of ownership was notified to the insurer after the acccident and thereafter the policy became effective in favour of the transferee on 5. 5. 78. THE question arose whether the insurer is entitled to avoid liability against 3rd party risk on the plea that the insurer had sold the vehicle covered by the insurance policy before the date of accident without intimation to the insurer. It was held that there being no subsisting contract between the insurance company and the transferee the Insurance Company was not liable to indemnify the transferee and therefore, the claimants were not entitled to recover any compensation from the Insurance Company. It was contended by the claimants that the insurance policy is with respect to a particular vehicle and transfer of its ownership during the subsistence of the policy is matter of no relevance or consequence and the Insurance Company cannot get rid of its liability to a 3rd party on this ground. In support of this arguments, reliance was placed on New Asiatic Insurance Company Vs. Pessumal Dhanamal Aswani (4) and Haji Zakaria Vs. Nashir Cama (5 ). THE Allahabad High Court concurred with the case of Haji Zakaria and distinguished the case of New Asiatic Insurance Company and held that the Insurance Company was not liable to indemnify the transferee as there was no subsisting contract between the Insurance Company and the transferee.