The main legal point established in the judgment is the requirement for a formal request to change the name of the insured in the insurance policy when transferring ownership of a vehicle, as per the Sale of Goods Act and Motor Vehicles Act.

ORDER :

MR. JUSTICE R.S. SHARMA, PRESIDENT

1. This appeal is directed against the order dated 7.1.2017, passed by District Consumer Disputes Redressal Forum, Rajnandgaon (C.G.) (henceforth “District Forum”) in Complaint Case No. 01/2015. By the impugned order, learned District Forum, has allowed the complaint of the complainant and directed that:

1. The O.P. will deposit sum of Rs. 7,58,395 (Rupees seven lakh fifty eight thousand three hundred and ninety five), which is Insured Declared Value of the vehicle bearing registration No. C.G.08-S-2373, in the office of the financier Mahindra and Mahindra Finance Services, within one month from the date of order and will send copy of the receipt to the complainant.

2. Looking to the facts and circumstances of the case, parties will bear their own cost of the case.

2. Briefly stated, the facts of the complaint of the complainant are that the complainant is registered owner of vehicle Scorpio Jeep bearing registration No. C.G.08-S-2373, which was insured with the O.P. for the period from 11.11.2013 to 10.11.2014 under Insurance Policy No. 1921003000890/192100/31/14/8937 and was in existence on the date of accident. The complainant was in need of the money therefore, the above vehicle was sold by the complainant to Mohammad Safi Quraishi and an agreement was executed between them, but the complainant is the actual owner of the vehicle till payment of entire instalment to the finance company and all liability and insurance certificate, R.C. book of the vehicle is in the name of the complainant. Thus the complainant is actual owner of the vehicle and in the supervision of Mohammad Safi Quraishi, the vehicle was being operated. On 8.5.2014, the complainant gave the vehicle to some family members for going Village Mudhpar and at the time of returning, at Village Brahmantola, all of a sudden the vehicle dashed with a tree and was damaged. In the accident two persons were died and six persons were injured. The incident was reported to Police Station, Sahaspur Lohara where Offence No. 167/2014 under Sections 279, 337 and 304A, IPC was registered and Challan was submitted before Judicial Magistrate, First Class, Kawardha, which is pending for trial. The complainant received the vehicle on Supurdginama and thereafter on 24.5.2014 he gave intimation regarding the incident to the O.P. On the instruction of the Insurance Company, the damaged vehicle was brought to Shivnath Automobiles, Durg for repairing where the Surveyor of the Insurance Company conducted survey in respect of the loss. The vehicle was completely damaged in the incident, therefore, request was made to make payment of Insured Declared Value Rs. 7,58,395. Before allowing the claim of the complainant, the O.P. demanded documents several times, explanation and affidavit, which were submitted by the complainant before the O.P. The O.P. avoided to make payment of the claim amount for about 4-5 months and lastly on 21.11.2014 the O.P. sent a letter informing that the O.D. Claim of the complainant was repudiated. In the letter dated 21.11.2014, the two reasons for repudiating the claim mentioned were the vehicle was sold to Mohammad Safi Quraishi and there was overloading in the vehicle as 11 persons were sitting. Actually by selling the vehicle, name was not transferred in the certificate of registration and the complainant is the insured. The Police Station Sahaspur Loahara did not add any section in the charge sheet produced by it in respect of overloading. Merely presence of the person on the spot, is not sufficient to presume that the vehicle was overloaded. The O.P. has erroneously repudiated the O.D. Claim of the complainant. Hence, the complainant has filed the instant complaint before the District Forum and prayed for granting reliefs, as mentioned in relief clause of the complaint.

3. The O.P. filed its written statement and averred that the complainant received a sum of Rs. 2,81,000 in cash on 19.12.2013 at 11.00 a.m. and given poss