Case Study 51 - 'No insurance claim if vehicle not transferred in name of new owner'

The UT Consumer Disputes Redressal Commission has upheld the decision of the insurance company to refuse the insurance claim of Rs 6.20 lakh to the previous owner, after the vehicle caught fire and was damaged. Justice Sham Sunder, President of the Commission, and Member Neena Sandhu stated that since the vehicle was neither registered nor insured in the name of the new owner, neither the new nor the previous owner had a valid claim to the insurance amount.

Rajinder Kaur, who had sold the vehicle to Sunil Kumar, had earlier filed a case in the UT Consumer Disputes Redressal Forum. The Forum had accepted her complaint, and had directed the insurance firm to pay a compensation of Rs 6.20 lakh to Kaur as her valid insurance claim.

The company filed an appeal against the forum’s order in the UT Consumer Disputes Redressal Commission. After considering the case, the commission held that after the sale, the registration certificate was not transferred in the name of the new owner.

Also, no intimation was given to the insurance company regarding the sale of the vehicle. The Commission upheld the decision of the insurance company in dismissing the insurance claim.

Source - financialexpress.com