NATIONAL INSURANCE COMPANY LTD. Vs. SUBHASH CHAND KATARIA

JUDGEMENT

(1.) Complainant No. 1, Subhash Chand Kataria, was the owner of the tempo, which was insured with the petitioner w.e.f. 11.1.2001 to 10.1.2002. On 8.1.2001, the vehicle met with an accident. As the vehicle was damaged, the complainant claimed that he spent Rs.1,50,000/ - on its repairs. On receipt of information, the revision petitioner - Insurance Company deputed a surveyor who assessed the loss at Rs. 58,669/ -. The Insurance Company repudiated the claim inter alia on the ground that there was no contract between complainant 2 and the petitioner and there was clear violation of the policy condition as two unauthorized persons were travelling in the vehicle though the vehicle was a goods carrier.

(2.) The District Forum allowed the complaint and awarded a sum of Rs. 58,669/ - in favour of the complainant No.1 along with interest @ 9 per cent p.a. from 12.6.2003 with Rs. 2,000/ - as costs. Dissatisfied by the order of the District Forum, the Insurance Company filed an appeal before the State Commission which enhanced the cost from Rs.2,000/ - to Rs. 20,000/ - while dismissing the appeal. Aggrieved by the dismissal of the order the petitioner has filed this revision petition.

(3.) Ld. Counsel for the petitioner - Insurance Company submits that passengers are not allowed to travel in a goods vehicle and the insurance policy has also to be transferred to the buyer within 14 days of the date of purchase as per the Indian Motor Tariff Regulations. In this case, there is no request for transfer of the insurance policy to the name of the buyer. As such, Mohinder Singh did not have any insurable interest.