UNITED INDIA INSURANCE CO LTD Vs. JAGPAL SINGH

JUDGEMENT

(1.) CAR No. PB -11 -W -1280 was owned by Major Harmanjit Singh, who allegedly gifted the same to his son -in -law Amanpreet Singh Sidhu in marriage on 23.10.2003. The registration of the vehicle was transferred in the name of Shri Amanpreet Singh Sidhu on 23.10.2003. The aforesaid car got damaged in an accident on 07.12.2003. A claim, seeking reimbursement was lodged with the petitioner company by Shri Harmanjit Singh. Noticing that the car had already been transferred in favour of Shri Amanpreet Singh on 23.10.2003, the insurance company rejected the claim, on the ground that Shri Harmanjit Singh did not have insurable interest in the vehicle after it had been transferred to Shri Amanpreet Singh. Being aggrieved, one Jagpal Singh Sandhu, claiming to be the attorney of both Amanpreet Singh and Harmanit Singh filed a complaint against the petitioner company, seeking payment of Rs.4,49,427/ -, being the insured value of the car alongwith compensation and cost of litigation.

(2.) THE complaint was resisted by the insurance company on the ground that as far as Shri Harmanjit Singh was concerned having sold the vehicle; he was left with no insurable interest in the said vehicle after 23.10.2003. As regards, Shri Amanpreet Singh, the insurance company claimed that there was no privity of contract between him and the insurance company.

(3.) VIDE its order dated 18.2.2008, the concerned District Forum allowed the complaint and directed the petitioner company to pay a sum of Rs.2,71,206/ - less salvage value of Rs.20,000/ - to the complainant, along with interest @ 9% per annum. A sum of Rs.2000/ - was awarded as the cost of litigation to the complainant.