LAWS(NCD)-1997-1-110

NATIONAL INSURANCE CO LTD Vs. LAL SINGH

Decided On January 16, 1997
NATIONAL INSURANCE CO LTD Appellant
V/S
LAL SINGH Respondents

JUDGEMENT

(1.) This appeal is by the National Insurance Company challenging the order of District Consumer Forum, Kapurthala directing the appellant to pay a sum of Rs.1,08,000/- after allowing 10% depreciation with 12% interest from the date of institution of the complaint till payment. A sum of Rs.2,000/- compensation for harassment and a sum of Rs.500/- as costs were also awarded.

(2.) Lal Singh, complainant claimed amount from the Insurance Company as his car, which was insured was stolen, on 7.12.1991. The Insurance Company repudiated the claim on May 18, 1995 which led the complainant to file the complaint. The Insurance Company inter alia took up several pleas in the form of prelminary objections. It was asserted that Lal Singh complainant was not real Lal Singh but some fictitious persons were put up namely Bhupinder Singh or Harbhajan Singh to defraud the Insurance Company. Jurisdiction of the District Forum was also disputed asserting that the car was stolen in Srinagar Lal Singh was alleged to be not a registered owner at the time the car was stolen. Bhupinder Singh s/o Chanan Singh resident of 21, Beant Nagar, near PAP Jalandhar was stated to be the registered owner. Lal Singh concealed material facts as aforesaid in getting the insurance policy. A replication was filed by the complainant controverting the allegations of the Insurance Company. Both the parties produced evidence on affidavits and documents. On consideration of the evidence produced, the impugned order was passed.

(3.) Learned Counsel for the Insurance Company, the appellant, has argued that since Lal Singh was not a registered owner he had no insurable interest in the vehicle and could not get insurance policy from the Insurance Company. Thus the complaint was liable to be dismissed. He is supported by the decision of State Commission, Haryana in this respect in National Insurance Co. Ltd. V/s. U. C. Dhiman, 1995 1 CPJ 14. The State Commission, Haryana held that a presumption can be raised with respect to ownership of a vehicle, whose name is entered in the Registration Certificate. That person can take insurance policy. The other persons having interest in the vehicle such as Financier could also take the insurance policy. That was a case where insurance policy was not taken by a person whose name did not find mention in the registration book. Reliance was placed on the decision of Haryana State Commission in Shri Rain Mnrti of Hissar V/s. The Oriental Insurance Company, Hissar,1993 CPC 478. The following passage from Ram Murti's case was quoted : "to conclude on the legal aspect, the answer to the question posed at the very outset is rendered in the affirmative. It is held that Clause 30 of Sec.2 of the Act lays down an inflexible presumption that a person in whose name a motor vehicle stands registered is its owner for the purpose of the insurance of the said vehicle against third party risks or comprehensively". In paras 8 and 9 of the judgment it was observed as under : "8. It would be somewhat menifest from the above that within mis jurisdiction there is an inflexible, if not an irrebuttable presumption that the person in whose name the motor vehicle is registered is the real owner thereof for the purpose of insurance. Any other person consequently cannot validly lay claim to the legal title thereof as long as the registration continues to stand in the said person's name. Consequently, unless some other insurable interest is established no person other than the registered owner can claim to have an insurable interest in the vehicle as its owner.9. Now once it is so, it necessarily follows that the insurers in the context of an insurance claim with regard to a vehicle can validly insist that either the insured was the registered owner of the vehicle or in the alternative had disclosed and established an insurable interest therein. They would be well within their right, to repudiate the liability, if the insured at the time of taking out the insurance or at the time of the loss is neither the registered owner of the vehicle nor can be established any other ancillary insurable interest therein. "