NATIONAL INSURANCE COMPANY LIMITED Vs. V. MAHABOOB BASHA

JUDGEMENT

(1.) This is an appeal preferred by the Insurance Company against the order directing it to pay Rs.1,36,092/- towards damages of the vehicle, Rs.2,000/- towards mental agony and Rs.1,000/- towards costs.

(2.) The case of the complainant in brief is that he purchased Eicher Motor vehicle and insured with the appellant Insurance Company for the period from 21.06.2004 to 20.06.2005. While so on 04.05.2005 while the vehicle was proceeding from Jamakondi to Subela of Karnataka State, it met with an accident and sustained damage. On report, the police registered the case in Crime No.101/2005 under Sec.337 and 338 IPC. Immediately he informed the said act to the appellant Insurance Company and got it repaired by incurring an amount of Rs.1,47,092/-. The Insurance Company in the first instance assured to settle the matter for Rs.92,000/-with interest, however later repudiated the claim on the ground that there was no transfer of ownership in favour of 2nd complainant. Therefore, the complainants filed complaint claiming Rs.1,47,092/- together with interest at 24% per annum from the date of accident i.e. 4.5.2005, Rs.20,000/- towards damages and costs.

(3.) The Insurance Company resisted the case. However, it admitted issuance of policy covering the risk of the vehicle during the period of accident. It alleged that the very complainant, the assured had informed that he sold away the vehicle to the second complainant for Rs.2,39,000/- under an agreement of sale dated 05.05.2004. It was before the accident. The 1st complainant was not the owner of the vehicle as on the date of the accident. There was no insurance policy in his name and therefore, the claim was rejected. In fact a surveyor was appointed who in turn visited the spot and noted the damages. At any rate, the complainants are not entitled to the claim. Therefore, they prayed for dismissal of the complaint with costs.