NATIONAL INSURANCE CO LTD Vs. RAM GOPAL SHARMA

JUDGEMENT

(1.) Respondent purchased a vehicle from the original owner Sh. M. S. Negi on 7.3.2003. The vehicle was insured with the appellant in the name of Sh. M. S. Negi for a period of one year from 20.7.2002 to 19.7.2003, which was stolen on 25.4.2003. A report to this effect was lodged with the police. By that time the vehicle was not transferred in the name of respondent nor was the policy. The policy remained in the name of the original owner Sh. M. S. Negi, who continued to be the registered owner in the record of the RTO. The claim of the respondent was repudiated by the appellant on the ground that since the insurable interests are not transferred in his name, he was not entitled for the benefit of the policy. Feeling aggrieved the respondent filed the instant complaint before District Forum.

(2.) While repelling the aforesaid stand of the appellant, the District Forum vide impugned order dated 3.10.2006, allowed the complaint of the respondent with the direction to the appellant to pay a sum of Rs.72,000 with Rs.5,000 as compensation and Rs.2,000 as cost of litigation.

(3.) As is apparent, the appellant through this appeal filed under Sec.15 of the Consumer Protection Act, 1986 , has assailed the impugned order mainly on the ground that under Sec.157 of Motor Vehicles Act, only third party interest are protected in case insurable interest are not transferred in the Insurance Policy. In support of this contention the Counsel for the appellant has placed reliance upon the judgment of Supreme Court of India in C. A. No.2131 of 1994 decided on 21.11.1995 entitled Complete Insulation (P) Ltd. V/s. New India Assurance Co. Ltd. , Observations of Supreme Court are as under : on a plain reading of Sec.103a it is obvious that the insurer could in a given case refuse to transfer the certificate of insurance and the policy described therein. It is only if the insurer fails to convey the refusal within fifteen days that the deeming clause comes into operation. However, Sec.157 of the New Act makes the transfer of the Certificate of Insurance along with the insurance policy described therein automatic along with the transfer of the motor vehicle together with the policy of insurance to the purchaser. This is clearly an improvement over the previous provision on the subject.