For 'Own Damage' insurance claims, the policy does not automatically transfer to the new owner upon vehicle sale; a specific request for transfer is required to establish privity of contract and insurable interest, as Section 157 of the Motor Vehicles Act applies only to third-party risks.

ORDER

(Per: Ms. Kumkum Rani, President):

This appeal under Section 41 of the Consumer Protection Act, 2019 has been directed against the impugned judgment and order dated 26.11.2022 passed by learned District Consumer Disputes Redressal Commission, Rudraprayag (hereinafter to be referred as “The District Commission”) in consumer complaint No. 06 of 2021, styled as Sh. Yashveer Singh Negi Vs. Branch Manager, National Insurance Company, wherein and whereby the consumer complaint was allowed and the appellant / opposite party (insurance company) was directed to pay compensation of Rs. 1,34,230/- to the respondent / complainant together with interest @6% p.a. from the date of filing of the consumer complaint, i.e., 18.08.2021 till payment.

The facts giving rise to the present appeal, in brief, are, as such that the respondent / complainant is the registered owner of vehicle bearing registration No. UK-09-CA-0277, which was comprehensively insured with the appellant / opposite party (insurance company) for the period from 05.08.2020 to 04.08.2021. During the currency of the insurance policy, on 10.02.2021 at about 10:30 a.m., the insured vehicle met with an accident near Chandrapuri, in the process of saving a dog, who had suddenly come in the middle of the road. In the said accident, the complainant also sustained injuries and for preliminary treatment, he was taken to District Hospital, Rudraprayag and thereafter, he was taken to Dehradun for further treatment. The F.I.R. of the accident was also lodged and intimation was also conveyed to the insurance company, but neither the surveyor of the insurance company visited the spot, nor the insured amount was paid. The insured vehicle sustained damages to the tune of Rs. 70,000/- to Rs. 80,000/-. This apart, an amount of Rs. 20,000/- was also incurred on the complainant’s treatment. The complainant got the vehicle repaired, incurring expenditure in excess of Rs. 1,00,000/-. Since the insurance company did not settle the claim of the complainant, hence the consumer complaint was instituted before the District Commission.

The appellant / opposite party (insurance company) filed written statement before the District Commission and pleaded that the subject vehicle was insured with the insurance company in the name of Sh. Gaurav Fondani, R/o Gaja Road, Chamba, Tehri Garhwal. Since the insured and owner of the vehicle are different, hence the complainant had no insurable interest. Therefore, the claim does not fall under the purview of the policy and the same was repudiated vide letter dated 16.06.2021. There exists no valid contract between the complainant and the insurance company. Therefore, the consumer complaint is liable to be dismissed.

The District Commission, after hearing learned counsel for the parties and taking into consideration the material available on record, allowed the consumer complaint vide impugned judgment and order dated 26.11.2022 in the above terms. Feeling aggrieved by the impugned judgment and order, the insurance company has preferred the instant appeal before this Commission.

We have heard learned counsel for the appellant – insurance company and perused the record. Vide order dated 22.07.2025, it was directed that the appeal shall be heard ex-parte against respondent.

The subject claim was repudiated by the appellant – insurance company vide letter dated 16.06.2021 (Paper No. 17), on the ground that since the insured and owner of the vehicle are different, therefore, there is no insurable interest of the complainant and the claim does not fall under the purview of the policy.

The vehicle in question was insured with the insurance company under Goods Carrying Vehicle – Package Policy for the period from 05.08.2020 to 04.08.2021 in the name of Sh. Gaurav Fondani, Gaja Road, P.O. Chamba, Tehri Garhwal, as would be evident from the copy of the insurance policy (Paper Nos. 19 to 22), on payment of premium of Rs. 19,7