NEW INDIA INSURANCE CO. LTD. Vs. JAGJIT SINGH

JUDGEMENT

(1.) Challenge in this Revision Petition, under Section 21 (b) of the Consumer Protection Act, 1986 (for short "the Act") is to the order dated 5.9.2008 in First Appeal No.2008/651 passed by State Consumer Disputes Redressal Commission, Delhi (in short, "the State Commission"). By the impugned order, the State Commission dismissed the appeal preferred by the Insurance Co. and confirmed the order of the District Forum.

(2.) The facts material to the complaint are that the complainant purchased a Tata Indica vehicle from the previous owner M/s K.S. Engineers on 13.3.2006 and the period of insurance for the said vehicle was valid upto 10.5.2006. The complainant averred that he had applied for renewal of the insurance policy and submitted all the requisite papers relating to the insurance of his car to the opposite party and paid a premium of Rs.7116/- by cheque dated 10.5.2006. The insurance policy was renewed w.e.f. 11.5.2006 to 10.5.2007. Unfortunately, the complainant's car was stolen on 1.6.2006 and the same was intimated to the opposite party on 2.6.2006. On 8.6.2006, the complainant was informed that the opposite party had wrongly issued the policy in the name of the previous owner in spite of furnishing all the requisite documents. Immediately, he had written to the OP on 9.6.2006 for effecting the necessary corrections. The complainant averred that he had applied for renewal of the insurance policy in good faith disclosing all the relevant information but the OP did not renew the policy in his name. The complainant had insurable interest at the time of taking up the policy on 11.6.2006 and, therefore, the repudiation of the opposite party on the ground that the policy is not in his name is unjustified. Hence the complainant approached the District Forum and sought direction to the opposite party to pay Rs.2,10,000/- with interest @ 18% p.a., compensation and costs. Direction was also sought to issue the corrected policy in the name of the complainant herein.

(3.) The Opposite party filed the written statement stating that M/s K.S. Engineers had taken the insurance policy for the period 11.5.2006 to 10.5.2007 whereas the vehicle covered under the policy had been sold on 13.3.2006 to complainant Shri Jagjit Singh and the said vehicle was stolen on 1.6.2006. The complainant made a claim on 2.6.2006 but the record shows that the insured M/s K.S. Engineers got the policy renewed in their name and even claimed 20% no claim bonus in the policy. At the time of renewal of the policy on 11.5.2006, the insured had no insurable interest in the subject car which has been in possession of Mr. Jagjit Singh, the complainant herein. The subject car has been transferred on 1.6.2006 and the complainant vide his letter dated 9.6.2006 had requested the opposite party to transfer the policy of insurance in his name whereas the theft of the vehicle took place on 1.6.2006.