The District Consumer Disputes Redressal Forum has directed New India Assurance Company to pay Rs 20,000 as insurance claim towards a stolen motorcycle.

The company had earlier repudiated the claim on grounds that it was not transferred in the name of the second owner.

The complainant, Ashish Jain, got his 2003 model Pulsar motorcycle insured with the New India Assurance Company for Rs 20,000.

It was averred that in May 2008, Jain’s friend, Om Parkash, borrowed the motorcycle for a day and the vehicle was stolen from his (Parkash) house, following which an FIR was lodged. The insurance company was informed, with a request not to transfer the ownership of the vehicle.

Thereafter, Jain visited the office of the company and requested them to settle the claim, but to his dismay, the company repudiated his claim saying the vehicle was not transferred in Parkash’s name.

In its reply, the New India Assurance Company pleaded that the complainant had sold the motorcycle to Om Parkash for Rs 18,000. Thus, on the date of the theft, the complainant had no insurable interest in the vehicle and, therefore, had no right of indemnification. The claim was, therefore, rightly declared as “No Claim” after thorough investigation as per the terms and conditions of the policy.

The forum said that as per Section 50 of the Motor Vehicles Act, in case of the transfer of vehicle, the previous owner has to report the transfer in Form No 29 to the registering authority, within whose jurisdiction the transfer is to be effected, and the transferee shall also report the transfer to the registering authority, along with the Certificate of Registration, Certificate of Insurance and appropriate fee.

... contd.