Insurance – Repudiation of Claim – Transfer of vehicle – Section 157 of the MV Act
The truck in question which was insured with the Petitioner – Insurance Company had met with accident on 1.11.2020. The Surveyor’s of Insurer had inspected the truck. The repair bills were, however, rejected by the Insurer on the ground that the truck was transferred to one Sanjeev Kumar and that the truck was not in the custody of the opposite party. The loan instalments were paid by Sanjeev Kumar since the truck was hypothecated. The truck could legal be transferred after repayment of the loan.
The owner had entered into an agreement for transferring the ownership of the vehicle at future point of time after repayment of entire loan taken for purchase of the truck. Section 157 provides for transfer of ownership and the certificate of insurance from the date of its transfer. The intention of the Legislature is to make the insurance Company liable immediately inspite of transfer having been recorded in the records of transport department.
In the present case, the transfer was not completed as per Section 157 of the MV Act and the claimant continues to be registered owner of the vehicle. Therefore, the insurance claim of repairs of the truck is maintainable.
Order dated 13.9.2024 of the Allahabad High Court at Lucknow (2024: AHC-LKO-63642) in Matters under Article 227 No.3907 of 2024 of the New India Assurance Company Limited Lakhimpur Kheri Vs. Permanent Lok Adalat Lakhimpur Kheri and another.
