NEW INDIA ASSURANCE CO LIMITED Vs. RAKESH KUMAR

JUDGEMENT

(1.) THIS is an appeal against the order of District Consumer Disputes Redressal Forum -II, U.T., Chandigarh (for short hereinafter to be referred as District Forum) dated 14.1.2005 in Complaint Case No. 212 of 2004 and R.B.T. No. 690 of 2004, Rakesh Kumar v. The New India Assurance Co. Ltd.

(2.) BRIEFLY the case of the complainant is that he had purchased a Hero Honda Splendor motor cycle No. CH -03 -E -0304, Chasis No. 01D2OF -11393, Engine No. 01D18E29333, Model 2001 from Shri Sukhraj Singh. The previous owner i.e., Sh. Sukhraj Singh had got this motor cycle insured vide policy No. 350306310212088 and the risk period covered was from 10.3.2003 to 9.3.2004. The complainant got the motor cycle transferred in his name and the registration certificate indicating the same is at Annexure C -5 of the complaint. It is averred by the complainant that vide his letter dated 21.3.2003 sent under Certificate of Posting, he informed the OP that the vehicle has been transferred to his name and, therefore, the insurance policy too, should also be transferred to his name. Since his letter elicited no response, he again sent another letter dated 14.5.2003 requesting the OP to transfer the insurance policy to his name. This letter was also sent under Certificate of Posting. However, no action was taken even on this letter. In the meanwhile, the motor cycle was stolen from free parking place near Neelam Cinema, Sector 17, Chandigarh on 31.12.2003 at about 8.03 p.m. The Complainant lodged F.I.R with the Police Station, Sector 17, Chandigarh and he also informed the OP about the theft of the motor cycle. He requested the OP that the insurance claim be paid to him. The OP vide their letter dated 27.2.2004 directed the complainant to produce the document by which the insurance policy has been transferred to his name. The complainant vide his letter dated 12.3.2004 sent under registered cover A.D informed the OP that he had made the request for transfer of the policy vide his letter dated 21.3.2003 and 14.5.2003 but the OP had not sent any response to the same. The OP vide letter dated 25.3.2004 expressed their inability to entertain the claim stating that they had no knowledge of the letters, requesting transfer, sent by the complainant to the OP. The complainant avers that the OP has failed to transfer the insurance policy of the motor cycle in his name and repudiated his legal claim. He, therefore, served a legal notice dated 19.4.2004 on the OP but the OP vide their letter dated 13.5.2004 repudiated his claim. Stating the repudiation to be a deficiency in service, this consumer complaint has been filed by the complainant seeking the following relief from the OP:

(3.) THE learned District Forum in their analysis of the case observed that this transaction of sale of motor cycle had been effected in the year 2003 and is squarely covered under the Insurance Regulatory and Development Authority (Protection of Policyholders Interest) Regulations, 2002 published in the Government of India Gazette Notification No. F. No. IRDA/Regu/4/2002 dated 26.4.2002. It also cited the authority reported as (M.P. State Commission), Mubeen Khan v. United India Insurance Co. Ltd., wherein extensive reference was made to the General Regulations issued under Section 64UP of the Insurance Act, 1938 by the Tariff Advisory Committee and circular issued for automatic transfer of insurance policy to the new owner/purchaser of the second -hand vehicle (GR -10 of the Indian Motor Tariff). GR -10 has been reproduced in the impugned order as under: 'On transfer of a vehicle the benefits under the policy in force on the date of transfer shall automatically accrue to the new owner. If the transferee is not entitled to the benefits of the bonus or subjected to Malus already shown on the policy, the recovery of the difference between his entitlement (if any) and that shown on the policy shall be waived till the expiry of the policy. However, on the expiry and/or termination of the existing policy, the transferee will be eligible for bonus or subjected to Malus as per his own entitlement. If the transferee wants to change the policy in his interest it may be done on getting acceptable evidence of sale and afresh proposal form duly filled signed. If a new certificate or insurance in the transferees name is required his old certificate of insurance must be surrendered and a fee of Rs. 15 must be collected. If the old certificate of insurance is not surrendered, a proper declaration must be taken from the transferee before a new certificate of insurance is issued.'