Vehicle Registration Certificate transfer enough to get insurance cover: Court

   

The transfer of vehicle registration certificate (RC) from the owner to buyer is sufficient to pass on benefits, including motor insurance policy, a Consumer Court has ruled.

The Court also ordered an insurance firm to clear the accident claim of nearly Rs 6.6 lakh & pay a compensation of Rs 60,000 to a man who had purchased a car & got its RC transferred to his name but not the insurance policy.

Mysuru resident Abishek R Das, 25, purchased a Hyundai Verna car from Sheeba Robert in Oct 2019. On Oct 10, Das got the RC transferred to his name & planned to transfer the insurance paper within the stipulated fourteen-day period. But on Oct 12, his acquaintance drove the car & caused a serious accident, entailing repair costs of over Rs 6 lakh.

With the car’s policy under United India Insurance Company Ltd active from Jan 16, 2019, to Jan 15, 2020, in the name of its previous owner Robert, Das raised an accident claim. While a surveyor was sent to assess the car damage, the firm turned down the claim, saying there was no contract between Das & United India & it was not liable to pay.

Das approached the I Additional District Consumer Disputes Redressal Commission with a complaint against United India Insurance on Aug 7, 2020. His lawyer presented his case while the insurer’s Bengaluru representatives failed to appear.

The insurer’s Chennai counterparts countered the case through their attorney who claimed that the complaint was false. The lawyer argued that the insurance policy was in the name of Sheeba, the first owner of the car, & Das was nowhere in the picture.

However, the consumer court cited Apex Court verdicts in similar cases where the second owner, as per section 157 of the Motor Vehicles Act, enjoys certain benefits, including insurance cover, if he transfers the RC to his name. The court pointed out the accident had taken place two days after the RC transfer.

In its verdict on November 18, 2021, the court held that the insurer repudiating Das’ accident claim for an active policy is a clear service deficiency.

It asked the insurer to pay Rs 6,58,432 with interest towards car repair & additional sums of Rs 25,000 (for causing inconvenience), Rs 25,000 (damages) & Rs 10,000 (court expenses).

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(With input from news agency language)

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