Is Deemed Transfer Of Motor Insurance Policy On Sale Of Vehicle Applicable Only To Third Party Risks? Supreme Court Refers To Larger Bench
1 year ago

Is Deemed Transfer Of Motor Insurance Policy On Sale Of Vehicle Applicable Only To Third Party Risks? Supreme Court Refers To Larger Bench

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In a significant development, the Supreme Court referred the issue of deemed transfer of the insurance policy upon transfer of vehicle ownership under the Motor Vehicle Act, 1988 to the larger bench after finding an inconsistency amongst two of its previous judgments.The Supreme Court referred the aforesaid issue to a larger bench after witnessing an inconsistency amongst its earlier rulings. In a significant development, the Supreme Court referred the issue of deemed transfer of the insurance policy upon transfer of vehicle ownership under the Motor Vehicle Act, 1988 to the larger bench after finding an inconsistency amongst two of its previous judgments. Supreme Court's Discussion In Complete Insulations, the three-judge bench of the Supreme Court held that “it is only in respect of third-party risks that Section 157 of the new Act provides that the certificate of insurance together with the policy of insurance described therein “shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred liability.” The court further held that under Section 103-A of the old Motor Vehicle Act, 1939, the Insurer had the right to refuse to transfer the certificate of insurance and/or the Insurance policy unless the certificate of insurance is with respect to third-party risks. However, in Surendra Kumar Bhilawe, the Two Judge Bench of the Supreme Court distinguished the Complete Insulations case on the note that the Complete Insulation delves on the old Motor Vehicle Act 1939 where under Section 103-A of the old Act, the Insurer had the right to refuse to transfer the certificate of insurance and/or the Insurance policy unless the certificate of insurance is with respect to third-party risks.

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History of this topic

2019 Amendment To Motor Vehicles Act Doesn't Affect Insurer's Liability To Pay Claimants Or Its Right To Recover Amount From Owner: Allahabad HC
1 month, 1 week ago

2019 Amendment To Motor Vehicles Act Doesn't Affect Insurer's Liability To Pay Claimants Or Its Right To Recover Amount From Owner: Allahabad HC

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The Allahabad High Court has held that the Motor Vehicles Act, 2019 does not take away the liability of the insurer to pay the compensation as awarded and later recover the same from the owner. Justice Kshitij Shailendra held, “The Court, therefore, holds that mere omission of proviso attached to sub-section of Section 149 of Motor Vehicles Act, 1988 after …

Private Car Act Policy | Gauhati High Court Sets Aside MACT Order Directing Insurance Company To Pay Compensation For Death Of Car Occupant
1 year, 3 months ago

Private Car Act Policy | Gauhati High Court Sets Aside MACT Order Directing Insurance Company To Pay Compensation For Death Of Car Occupant

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The Gauhati High Court has set aside an order of the Motor Accident Claim Tribunal, in a case involving the death of an occupant of an insured vehicle due to rash and negligent driving, wherein the tribunal had directed the Oriental Insurance Company to pay compensation to the claimant and subsequently recover the same from the owner of the offending …

Insurance Company Not Liable To Unauthorised Passengers Traveling In Offending Vehicle, Pay & Recover Principle Not Applicable: J&K High Court
2 years ago

Insurance Company Not Liable To Unauthorised Passengers Traveling In Offending Vehicle, Pay & Recover Principle Not Applicable: J&K High Court

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The Jammu and Kashmir and Ladakh High Court has observed that once it is shown that deceased/injured persons were traveling as unauthorised passengers in an offending vehicle and their risk is not covered under the terms insurance policy, the insurer cannot be saddled with the liability to compensate them and even the principle of 'Pay and Recover' will not be …

Compulsory Risks In Insurance Automatically Transferred To Transferee Of Vehicle Even When Certificate Of Insurance Not Transferred: Jammu & Kashmir High Court
2 years ago

Compulsory Risks In Insurance Automatically Transferred To Transferee Of Vehicle Even When Certificate Of Insurance Not Transferred: Jammu & Kashmir High Court

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The Jammu and Kashmir and Ladakh High Court has recently ruled that whoever may be the actual owner of the motor vehicle at the time of the accident, compulsory risks covered under the policy of insurance get automatically transferred to the transferee of a vehicle even though certificate of insurance has not been transferred in his favour. Elaborating further on …

[Principle Of Pay & Recover] Statutory Right Of Third Party To Be Compensated U/S 149 MV Act Even If Vehicle Owner Contests Claim: Karnataka HC
2 years, 5 months ago

[Principle Of Pay & Recover] Statutory Right Of Third Party To Be Compensated U/S 149 MV Act Even If Vehicle Owner Contests Claim: Karnataka HC

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The Karnataka High Court has said the 'Principle of Pay and Recover' under section 149 of the Motor Vehicles Act is a statutory right available to third party and it cannot depend on whether the owner of offending vehicle contests the claim petition or not, or may or may no prefer an appeal against the Tribunal order. A single judge …

Motor Vehicles Act -Claimant Whether Gratuitous Or Non- Gratuitous Cannot Fasten Liability On The Insurer Under The Provisions Of Motor Vehicles Act: J&K&L High Court
2 years, 6 months ago

Motor Vehicles Act -Claimant Whether Gratuitous Or Non- Gratuitous Cannot Fasten Liability On The Insurer Under The Provisions Of Motor Vehicles Act: J&K&L High Court

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The Jammu and Kashmir and Ladakh High Court recently ruled that In a claim with regard to death or disability of a person travelling by a goods vehicle /goods carriage, as gratuitous or non-gratuitous does not, by the application of statutory provisions of Motor Vehicles Act, fasten the liability on the insurer, except an owner of the load /goods travelling …

Motor Accident Claims : Does Third Party Insurance Cover Pillion Rider?Supreme Court Refers To Larger Bench
2 years, 6 months ago

Motor Accident Claims : Does Third Party Insurance Cover Pillion Rider?Supreme Court Refers To Larger Bench

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Whether a pillion rider on a motorcycle is a third party? Is the insurance company liable to indemnify the insured on account of the injuries or death of such pillion rider in case of an "Act Only" Policy? The Supreme Court has referred these questions to a larger bench.The bench comprising Justices Hemant Gupta and Vikram Nath was considering a …

Can 3rd Party Insurance Be Claimed When Accident Took Place On The Same Day The Policy Was Taken But The Coverage Starts Only From The Next Day?SC To Examine
3 years, 6 months ago

Can 3rd Party Insurance Be Claimed When Accident Took Place On The Same Day The Policy Was Taken But The Coverage Starts Only From The Next Day?SC To Examine

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The Supreme Court on Tuesday stayed the operation of a Jharkhand High Court's order which allowed the claim in the case of a motor accident, that occurred a day prior to the coverage of the insurance period, but in which the insurance premium was paid on the very day of the accident.The Bench of Justice Sanjay Kishan Kaul and Justice …

Motor Vehicles Act - Third Party Insurance Deemed To Be Transferred Along With Effective Control Over Vehicle In A Hire Agreement: Supreme Court
3 years, 8 months ago

Motor Vehicles Act - Third Party Insurance Deemed To Be Transferred Along With Effective Control Over Vehicle In A Hire Agreement: Supreme Court

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When a transport corporation hires a motor vehicle for use from its registered owner, the third-party insurance coverage will also be deemed to be transferred along with the vehicle, reiterated the Supreme Court in a recent decision.The person who is having the effective control and command of the vehicle will be regarded as the 'owner'. When a transport corporation hires …

Insurer Cannot Avoid Third Party Liability On The Ground Of Non-Registration Of Vehicle : Himachal Pradesh HC [Read Judgment]
5 years, 8 months ago

Insurer Cannot Avoid Third Party Liability On The Ground Of Non-Registration Of Vehicle : Himachal Pradesh HC [Read Judgment]

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The Himachal Pradesh High Court has held that lapse of temporary registration of a vehicle does not amount to a breach of conditions of the third party insurance policy.Therefore, the insurer cannot seek to avoid liability to indemnify the owner in respect of claims arising out of accident caused by the vehicle after the period of temporary registration.An insurer is …

It Is The Burden Of Insured To Prove That Intimation Of Cancellation Of Insurance Policy Was Not Received From Insurer : Kerala HC Full Bench [Read Judgment]
6 years, 4 months ago

It Is The Burden Of Insured To Prove That Intimation Of Cancellation Of Insurance Policy Was Not Received From Insurer : Kerala HC Full Bench [Read Judgment]

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"The burden is on the addressee to rebut the presumption by conclusive evidence that he did not really receive the letter and it is not a case of deliberate avoidance. The burden is not on the insurer to establish conclusively that the intimation of cancellation of insurance coverage was in fact served on the insured or the registering authority", held …

All New Vehicles Sold To Have Third-Party Insurance Coverage -3 Years For Cars And 5 Years For Two Wheelers [Read Circular]
6 years, 6 months ago

All New Vehicles Sold To Have Third-Party Insurance Coverage -3 Years For Cars And 5 Years For Two Wheelers [Read Circular]

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With the Supreme Court refusing to extend the deadline, all new vehicles sold from 1st September 2018, should have mandatory third-party insurance coverageWhile considering a public interest litigation seeking guidelines for improving road safety filed by S. Rajaseekaran, Chairman & Head of Orthopedic Department, Ganga Hospital, Coimbatore, the bench comprising of Justice Madan B. Lokur. With the Supreme Court refusing …

Third Party Insurance Of 3 Yrs For Cars & 5 Yrs For Two Wheelers Mandatory For Vehicles Sold From Sept 1 : SC [Read Order]
6 years, 7 months ago

Third Party Insurance Of 3 Yrs For Cars & 5 Yrs For Two Wheelers Mandatory For Vehicles Sold From Sept 1 : SC [Read Order]

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The Bench also observed that number of deaths caused by potholes was “frightening”The Supreme Court has ordered that third party insurance coverage of three years for cars and five years for two wheelers should be mandatory for all vehicles sold from September 1. The Bench also observed that number of deaths caused by potholes was “frightening” The Supreme Court has …

Third Party Insurance Of 3 Yrs For Cars & 5 Yrs For Two Wheelers Mandatory For Vehicles Sold From Sept 1 : SC [Read Order]
6 years, 7 months ago

Third Party Insurance Of 3 Yrs For Cars & 5 Yrs For Two Wheelers Mandatory For Vehicles Sold From Sept 1 : SC [Read Order]

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The Bench also observed that number of deaths caused by potholes was “frightening”The Supreme Court has ordered that third party insurance coverage of three years for cars and five years for two wheelers should be mandatory for all vehicles sold from September 1. The Bench also observed that number of deaths caused by potholes was “frightening” The Supreme Court has …

Would Delay In Informing Insurer About Vehicle Theft Debar The Insured From Getting Insurance Claim: SC Refers Question To 3-Judge Bench [Read Order]
7 years, 2 months ago

Would Delay In Informing Insurer About Vehicle Theft Debar The Insured From Getting Insurance Claim: SC Refers Question To 3-Judge Bench [Read Order]

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The Supreme Court, in Gurshinder Singh vs Sriram General Insurance Co Ltd., has referred to a three-judge bench the question whether delay in informing the insurance company about the theft of vehicle would debar the insured from getting the insurance claim.The Bench of Justice Madan B Lokur and Justice Deepak Gupta noticed the conflicting views taken by earlier two judge …

Insurer Has No Liability Once There Is Breach Of Condition Of Insurance Policy: SC [Read Order]
7 years, 3 months ago

Insurer Has No Liability Once There Is Breach Of Condition Of Insurance Policy: SC [Read Order]

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The Supreme Court, in MS Middle High School Vs HDFC Ergo General Insurance Co Ltd, has upheld a high court judgment which held that once there is breach of condition of insurance policy, the liability cannot be fastened on the insurer.The Punjab and Haryana High Court had affirmed the findings of the tribunal that the offending vehicle did not possess …

Insurer Can’t Raise Defence Of Victim’s Negligence In Proceedings Under Sec. 163A MV Act: SC [Read Judgment]
7 years, 3 months ago

Insurer Can’t Raise Defence Of Victim’s Negligence In Proceedings Under Sec. 163A MV Act: SC [Read Judgment]

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The Supreme Court, in United India Insurance Co. Ltd. Vs. Sunil Kumar & Anr, has held that, in a proceeding under Section 163A of the Motor Vehicles Act, it is not open for the insurer to raise any defence of negligence on the part of the victim.A three-judge bench of the Supreme Court headed by Justice Ranjan Gogoi was answering …

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