The district consumer disputes redressal commission, Ropar, camp court at Mohali, has directed Universal Sompo General Insurance to pay ₹2 lakh to a Kurali resident after holding that it wrongly rejected his motor insurance claim on the ground that the vehicle had not been formally transferred in his name at the time of the accident.
The commission held that Amrish Kaushal had purchased the vehicle, paid the insurance premium and initiated the registration transfer process before the accident. It ruled that the delay in transferring the registration certificate (RC) resulted from the Covid-19 pandemic and could not be attributed to the complainant.
According to the complaint, Kaushal, a resident of Kurali in Mohali district, purchased a second-hand Maruti car from Harpreet Singh in September 2020 for ₹7.8 lakh. After purchasing the vehicle, he deposited the required transfer fee with the Mohali registration authority on October 9, 2020, to transfer the RC in his name.
The complainant stated that the registration process was delayed because of the Covid-19 pandemic, and the transport department gave December 31, 2020, as the tentative date for issuing the updated RC.
Meanwhile, Kaushal purchased a comprehensive insurance policy for the period from October 12, 2020, to October 11, 2021, after paying a premium of ₹15,282. The policy was issued in the name of the previous owner, Harpreet Singh, despite the premium having been paid by Kaushal.
{{/usCountry}}Meanwhile, Kaushal purchased a comprehensive insurance policy for the period from October 12, 2020, to October 11, 2021, after paying a premium of ₹15,282. The policy was issued in the name of the previous owner, Harpreet Singh, despite the premium having been paid by Kaushal.
{{/usCountry}}The vehicle later met with an accident near Haridwar while the complainant was allegedly trying to avoid stray cattle. The insurer appointed a surveyor, who assessed the repair loss at ₹2 lakh. The insurance company repudiated the claim, stating that Kaushal had no insurable interest because the insurance policy remained in the previous owner’s name.
After examining the records, the commission observed that the complainant had already completed the necessary formalities for transfer of ownership before the accident and that the delay in issuance of the RC was beyond his control because of Covid-19-related restrictions.
Relying on the Supreme Court’s (SC) ruling in Surendra Kumar Bhilawe and the Union government’s notification extending the validity of motor vehicle documents during the pandemic, the commission held that the insurer could not deny the claim merely because the formal transfer of ownership had not been completed.
The commission directed the insurer to pay ₹2 lakh along with 9% annual interest from the date of filing of the complaint until payment. It also awarded ₹20,000 towards compensation for mental harassment and litigation expenses.