Page 46 - Insurance Times Janaury 2021

person. It includes heirs as well as persons who represent and though temporary registration of the vehicle expired
the estate even without title either as executors or on 19-07-2011, the Complainant did not get the vehicle
administrators in possession of the estate of the deceased. permanently registered. Thirdly, the Complainant left the
All such persons would be covered by the expression 'legal vehicle unattended outside the guesthouse, in violation of
representative'." the Policy condition.
The Court thus held that the claimants failed to prove that District Forum dismissed the complaint stating "as at the
they were dependant upon deceased, the relationship being time of the theft the vehicle is not registered, there was
respondent 1 to be real sister of deceased not proved. Non- no deficiency in service on the part of the Opposite Party".
applicant 2 is earning and nothing is mentioned about the Against the order of the District Forum, the Complainant
husband of applicant 1 and father of applicants 2 to 7. preferred an Appeal before the State Commission and State
In view of the above, the appeal was allowed and Insurance Commission set aside the order of the District Forum while
Company was exonerated from its liability to satisfy the allowing the appeal.
amount of compensation and instead it was cast upon non- Aggrieved by the State Commission's Order, Opposite Party/
applicant 3/registered owner of the offending Insurance Company preferred the present Revision Petition.
vehicle.[United India Insurance Company v. Kimani Devi,
Analysis and Decision
2020 SCC OnLine Chh 881, decided on 09-10-2020]
Core issue for the adjudication was in regard to the

If a car is stolen while being insured but registration of the vehicle after expiry of temporary
registration.
temporary registration of car expires,
Since the Petitioner/Insurance Company had received the
Insurance company cannot repudiate insurance premium and there was no violation of any

claim specific condition in the Insurance Policy, the Insurance
Company was liable to indemnify the insured for the loss
National Consumer Disputes Redressal Commission suffered by the insured.
(NCDRC): C. Vishwanath (Presiding Member), held that
Though plying a vehicle on road without registration is a
since the Insurance Company itself insured the
violation of provisions of Motor Vehicle Act, the Competent
complainant's vehicle and the vehicle had been stolen
Authority to take action against a non-registered vehicle is
during the currency of the Policy and the Police were
the Police and other Government authorities. Insurance
informed immediately, the Insurance Company could not
Company after accepting the premium, cannot escape from
repudiate the claim.
its liability and repudiate the claim on this technical ground.
The instant revision petition was filed under Section 21(b)
Commission in view of the instant matter stated that:
of the Consumer Protection Act, 1986 against the Order
The temporary registration of the vehicle expired on 19-
passed by Rajasthan State Consumer Disputes Redressal
07-2011 and the car got stolen on 28-07-2011, mere 9 days
Commission.
later. The Motor Vehicle Act does provide for registration
Facts of the case of vehicle after its expiry on payment of certain fee.
Respondent obtained an Insurance Policy from the Commission held that when the Insurance Company itself
petitioner for his Car being temporary registration for a sum insured the complainant's vehicle and the vehicle had been
of Rs 6,17,800. stolen during the currency of the Policy and the Police was
In the night of 28-07-2011, Complainant's car was stolen informed immediately, the Insurance Company cannot
from Geeta Guest House, Jodhpur. Police could not trace repudiate the claim of the Complainant on a technical
the vehicle and submitted a negative final report. ground.
Complainant submitted an insurance claim with the In view of the above-discussion, State Commission's Order
Opposite Party/Insurance Company. Petitioner/Opposite was justified and the same did not suffer from any illegality,
Party repudiated the claim, on the ground that intimation therefore revision petition was dismissed. [United India
of theft of the vehicle was given to the Insurance Company Insurance Co. Ltd. v. Sushil Kumar Godara, Revision Petition
with delay, which was in violation of the Policy condition No. 1984 of 2015, decided on 11-12-2020]

46 The Insurance Times, January 2021