Page 54 - Insurance Times February 2024

Insurance Caselaws

Person can’t claim insurance amount if compensation for mental agony and Rs. 5,000/- for litigation
costs.
policy is not transferred in his/her
Unsatisfied with the District Commission's decision, the
name, Andhra Pradesh Commission Insurance Company appealed to the State Consumer
allows National Insurance Co’s appeal Disputes Redressal Commission in Andhra Pradesh ("State
Commission"). The Insurance Company argued that,
The Andhra Pradesh State Consumer Disputes Redressal
although the car was transferred to the complainant's
Commission bench comprising Smt. C.V.S. Bhaskaram
name, the insurance policy was not similarly transferred.
(Woman Member) and Sri B. Srinivasa Rao (Member),
Citing the Motor Vehicles Act and the All-India Tariff
allowed an appeal filed by National Insurance Company Guidelines, which stipulate that the transferee must
Limited. This appeal contested the ruling of the District
approach the Insurance Company within 14 days of
Commission, Machilipatnam (A.P.), which held the Insurance ownership transfer, submit a proposal with the new owner's
Company liable for payment and compensation despite the details, and remit the prescribed fee for ownership transfer,
policy not being in the complainant's name at the time of the Insurance Company claimed that the complainant
the accident. The State Commission restated the principle overlooked this requirement. The complainant herself
that an individual is not entitled to claim damages for a acknowledged this oversight, admitting that she failed to
vehicle when the insurance policy has not been transferred transfer the insurance policy to her name.
into their name.
Observations by the Commission:
Brief Facts: The State Commission concurred with the arguments
The complainant's husband purchased a Honda City car and presented by the Insurance Company and determined that,
insured it with National Insurance Company Limited given the non-transfer of the insurance policy into the
("Insurance Company"). Subsequently, the car was complainant's name, the Insurance Company rightfully
transferred to the complainant, his wife. Following an repudiated the claim in accordance with the terms and
conditions of the relevant policy. The State Commission also
accident, the complainant incurred repair expenses
amounting to Rs. 1,88,070. Seeking reimbursement, the noted that the District Commission overlooked the absence
of insurable interest between the complainant and the
complainant submitted a claim to the Insurance Company.
Insurance Company at the time of the accident.
However, the Insurance Company repudiated the claim,
asserting that the complainant lacked insurable interest Relying on the precedent set in the case of M/s Complete
since the policy was initially obtained and submitted in her Insolations (P) Ltd. vs New India Insurance Company Limited
husband's name. (AIR 1996 Supreme Court 586), the State Commission
emphasized that an individual is not entitled to claim
Feeling aggrieved by this decision, the complainant lodged
damages for the accident of the vehicle when the insurance
a consumer complaint with the District Consumer Disputes policy has not been transferred into their name.
Redressal Commission in Machilipatnam, Andhra Pradesh
Consequently, the appeal was allowed, and the District
("District Commission"). The District Commission ruled in
Commission's order was set aside.
favour of the complainant, directing the Insurance Company
to disburse the insurance amount. Additionally, the Case Title: National Insurance Company Limited and Anr.
Insurance Company was ordered to pay Rs. 10,000/- as vs Smt. Buragadda Sridevi

The Insurance Times February 2024 49