LAWS(NCD)-2015-1-57

NATIONAL INSURANCE COMPANY LTD Vs. CHARANJIT SINGH SANDHU

Decided On January 13, 2015
NATIONAL INSURANCE COMPANY LTD Appellant
V/S
Charanjit Singh Sandhu Respondents

JUDGEMENT

(1.) Kuljit Singh, respondent No.2 was the owner of the vehicle bearing Registration No. HR-55-7421 and got it insured with the insurance company for the period 24.08.2005 to 06.02.2006. Respondent No.1 Charanjit Singh Sandhu (now deceased and represented by his LR's) purchased the said vehicle from the respondent no.2 in the first week of November, 2005. Respondent No.1 parked the said vehicle in front of his residential house at about 10 PM but in the morning of 13.11.2005 the said vehicle was found to have been stolen. FIR was registered with the police but subsequently the case was filed as "Untraced". Respondent No.1 lodged the claim with the petitioner insurance company but the same was repudiated vide letter dated 09.01.2007 on the ground that the vehicle was purchased by respondent no.1 in November, 2005 but policy was not transferred in his name. Respondent no.2 made a request to the petitioner insurance company to pay the claim to either of the respondents as the vehicle at the time of theft was under insurance cover. The petitioner insurance company refused to agree to the request and hence, both the respondents jointly filed the complaint before the District Forum, Hoshiarpur. On notice, the petitioner insurance company filed its reply in which preliminary objections were taken and insurance company also contested the case on merits. It was pleaded that the petitioner insurance company was never informed by the respondents-complainants regarding the sale of the vehicle and as such the insurance policy was not transferred in the name of the respondent no.1-complainant no.1. Respondent No.1 failed to provide any document with regard to the sale of the vehicle in his favour and hence he was not admitted to be a consumer of the petitioner-OP insurance company. It was submitted that the parties were bound by the terms and conditions of the insurance policy and since the insurance policy has not been transferred in the name of the respondent no.1, he had no insurable interest and as such the claim was rightly repudiated by the OP-insurance company. Denying any deficiency in service on its part, the insurance company prayed for dismissal of the complaint.

(2.) Evidence was led by the respective parties in support of their respective contentions. The District Forum after considering the matter, accepted the complaint with cost of ?1,000/- vide its order dated 03.10.2007 and directed the petitioner-OP insurance company to pay the amount of ?6 Lakhs being the insured value with interest @ 9% per annum from the date of filing the complaint, i.e., 11.04.2007 till realization.

(3.) Aggrieved of the order of the District Forum, the petitioner insurance company filed an appeal bearing No.1439 of 2007 before the State Consumer Disputes Redressal Commission, Chandigarh, Punjab which dismissed the same vide its order dated 21.04.2008 and upheld the order of the District Forum. Aggrieved of this order of the State Commission, the petitioner insurance company has now filed the present revision petition challenging the same.