IMPORTANT POINTS
(1) Start of the 14-Day Grace Period – Under Section 157(2) of the Motor Vehicles Act, the statutory 14-day window for a new vehicle owner to transfer the existing insurance policy begins on the date they physically receive the transferred Registration Certificate (RC), not the date the transfer was initiated or processed.
(2) Insurer Liability During the Grace Period – If an accident occurs within this 14-day grace period, the insurance company cannot reject the claim by arguing the new owner lacks “insurable interest.” The buyer remains protected under the previous owner’s policy while the transfer is within the statutory window.

JUDGMENT

Vishav Kant Garg, Member—Appellants/ICICI Lombard General Insurance Company Limited & Anr., have filed the present Appeal through its Authorized Signatory to challenge the majority view of the Ld. Members of the District Consumer Disputes Redressal Commission, Mansa passed in Complaint No. 51 of 2023 vide impugned order dated 28.11.2024 (in short, “the District Commission”), whereby the Complaint filed by the Respondent No.1/Complainant-Gurmail Singh had been partly allowed.

2. It would be apposite to mention here that hereinafter the parties will be referred, as were arrayed before the District Commission.

3. Briefly, the facts of the case as made out by the Respondent No.1/Complainant in the Complaint filed before the District Commission are that the Consumer Complaint was filed by Gurmail Singh, Complainant through his SPA Gurtej Singh. The Complainant had averred that he had purchased second hand Toyota Fortuner, Colour White Pearl MIC, from Kamaljit Singh of New Delhi and registered vide New Registration No. PB- 31-X-4022. Said vehicle was having Chassis No. MBJ11JV6104012753 and Engine No. 1KDU253535. At the time of purchase, said vehicle had been insured with OPs No.1&2 vide Policy No.3001/241664328/00/000, which was valid for the period w.e.f. 08.03.2022 to 07.03.2023. The Complainant had alleged that he had paid the premium of Rs.408/- for the endorsement of the Insurance Policy in his name, which was done vide Endorsement No. 3001/241664328/00/001.

4. The Complainant’s Vehicle had met with an accident on 15.01.2023 at around 10.17 PM. The same was registered at Police Chowki Saneta vide DDR No. 11 dated 16.01.2023 (wrongly mentioned as 16.01.2022). Thereafter, the Complainant had lodged the insurance claim with the OPs. An amount of Rs.16,89,368/- spent by the Complainant on repair, had been demanded from the OPs, which matter they had lingered on one pretext or the other. Due to said act of the OPs, the Complainant had suffered physical pain, mental agony, financial loss and harassment. Lateron the said claim had been repudiated vide letter dated 24.03.2023.

5. Stating the act of the opposite parties to be a case of ‘deficiency in service’ and ‘unfair trade practice’, it was prayed in the Complaint that the OPs be directed to disburse Rs.16,89,368/- as repair charges, Rs.15,017/- as labour charges alongwith interest @ 18% p.a. Rs.1,00,000/- be demanded on account of pecuniary loss and Rs.50,000/- as compensation on account of mental harassment and suffering. Rs.20,000/- be also demanded on account of litigation expenses.

6. Upon issuance of notice in the Complaint, the Opposite Parties had filed their written statements. OPs No.1&2 in their written statement had raised certain preliminary objections that the Complainant had concealed the material facts and documents. The Complainant was not a Consumer of the OPs. He had no locus-standi or cause of action to file the Complaint. It was pleaded that the Complainant had misrepresented the material facts and in the given circumstances the date of loss was not justified. It was also pleaded that on the date of loss, there was no insurable interest between the Complainant and the OPs No.1&2. The vehicle had been sold and RC was transferred by the previous owner Kamaljit Singh in the name of the Complainant but the Complainant had not transferred the Insurance Policy in his name till the date of accident. Hence, there was violation of GR 17 of All India Motor Tariff and the claim was repudiated vide letter dated 24.03.2023 and the same was sent to the earlier owner Kamaljit Singh. Before the date of accident, no request has been made by the Complainant for the transfer of the ownership of the Insurance Policy in his name. As per Section 157(2) of the Motor Vehicles Act, it was mandatory that the owner has got transferred the Insurance Policy in his name within 14 days of the purchase along with application on the prescribed Form by paying the necessary fee. In the