The court established that the claimant did not have insurable interest in the car as it was sold to the deceased driver, and therefore, the claim was rightly repudiated by the insurance company.

JUDGMENT :

Mr. Piare Lal Garg, Presiding Member-This is an appeal filed by the appellant-United India Ins. Co. Ltd. (hereinafter called ‘the appellant’) against the order dated 2.7.2008 of the District Consumer Disputes Redressal Forum, Sangrur (hereinafter called the ‘District Forum’) vide which the complaint of the respondent/complainant (hereinafter called ‘the respondent’) was accepted by the District Forum.

2. Brief facts of the case are that the respondent purchased Accent Car bearing registration No. PB-28-C-4723 model 2006 and insured comprehensively with the appellant vide cover note No. 664539 for an amount of Rs. 4,25,000/- for the period of 19.1.2007 to 18.1.2008 by paying premium of Rs.14,866/-.

3. The car met with an accident when the same was being driven by his friend Sh. Amit Goel having valid licence on 19.1.2007, who died in the accident. The car was totally damaged in the accident. The claim was lodged with the appellants. Investigator was appointed and the claim was also investigated by the investigator. It was further pleaded by the respondent/complainant that during the investigation the investigator dictated some statements which the respondent wrote at the instance of the investigator due to his mis-guidance, the claim of the respondent was repudiated vide letter dated 7.12.2007 on the ground that the respondent had already sold the vehicle to deceased Amit Goel and he was not having insurable interest. The complaint was filed alleging deficiency in service on the part of the appellants with the prayer that the appellants may be directed to pay Rs. 4,25,000/- alongwith interest @ 18% per annum from the date of accident till payment with Rs. 50,000/- as compensation for mental tension and harassment as well as demand of Rs. 22,000/- was also made as litigation expenses.

4. Upon notice, reply was filed by the appellants by taking preliminary objections that the respondent does not come under the definition of ‘consumer’ as he had already sold the car in dispute to Sh. Amit Goel s/o Sh. R.P. Goel, c/o. M/s Om Auto and General Finance, Malerkotla in September, 2006. The purchaser get the car registered at Malerkotla and also purchased the insurance policy for the period of 19.1.2007 to 18.1.2008 in the name of the respondent. The car was not insured for the period of 19.1.2007 to 18.1.2008. The respondent was not the owner of the car as such he was not having insurable interest. It was denied that the car was insured by the respondent himself. It was further pleaded that the car met with an accident and the car was damaged and Sh. Amit Goel died in the accident as per the FIR. On intimation, Surveyor was appointed as well as the matter was also investigated. The respondent himself submitted his statement written by him to the investigator, which is reproduced:-

“Statement submitted by Sh. Sumit Arora Son of Sh. Manohar Lal residence of Bhadroja Road, Near Govt. Primary School, Pathankot dated 3/3/07. I do hereby stated that I purchased a car Accent PB-28C-4723 I purchased in January 2006 through Civil Supply from the dealer of Hyundai Defence Road, Pathankot amounted 5.50 Lacs and give to Amit Goyal R/o Malerkotla in September 2006 under Sale deed in Rs. Near about 4.50 lac. The vehicle was purchased by me under finance provision from State Bank of Patiala, Shahpur Chowk Pathankot. After taking the cost of the car from Mr. Amit Goyal I deposited to State Bank of Patiala, to refund my loan. I have no knowledge about Hardev Singh s/o Ujjagar Singh or President of Village Akhtiarpura Tehsil Malerkotla Distt. Sangrur, that how he appeared in the sale deed of car sold car in between Sh. Amit Goyal and myself. I retained the car with me nine months without registration with any D.T.O. This copy of Affidavit of Sale Purchase Deed of the said car will be handed over. Immediately of finding out even otherwise my statement remain uncompleted or I will submit in respect of sale purchase deal of the said car taken in betwe