What is insurable interest?
The existence of insurable interest is an essential ingredient ofany insurance contract. In an insurance contract, it is not the house or machinery or the ship that is insured, but it is the pecuniary interest of the insured in that house, machinery or shop etc. which is insured. The insured must stand in a relationship with the subject matter of insurance whereby he benefits from its safety or well-being and would be prejudiced by its loss or damage. And this relationship must be recognized by law.
Because at the time of the loss, you were the owner of the vehicle because you have bought the car. But you have not transferred the ownership in your name and continued the RC and Insurance in the old owner. The surveyor has denied the claim. You can raise it in the consumer court.