The Udupi District Consumer Disputes Redressal Commission has ruled that if an insurance policy is not transferred within 14 days of vehicle ownership transfer, the second-hand owner is not eligible to seek compensation from the insurance company under service deficiency.
Case Background
The complainant, a resident of Bhatkal, purchased a car from a person in Bengaluru. After purchasing the car, the original owner transferred ownership to the second-hand owner at the Honnavar RTO office on November 30, 2024. Later, on May 29, 2025, the car met with an accident near Kinumulky in Udupi and was completely damaged.
Insurance Claim Denied
The car showroom provided an estimate that it would cost Rs 10,54,000 to repair the vehicle. At the time of the accident, the said car had insurance worth Rs 7,58,000. The complainant submitted relevant documents to the insurance company to repair the damaged car. However, the insurance company refused to provide the insurance to the complainant.
Complaint Filed
Subsequently, the complainant filed a grievance against the insurance company under service deficiency before the Consumer Disputes Redressal Commission, seeking compensation.
Arguments and Order
The insurance company's advocate, H Anand Madiwala, argued that at the time of the accident, there was no insurance agreement between the complainant and the insurance company. Further, the complainant had allegedly violated Section 157(2) of the Motor Vehicles Act 1988 by not transferring the insurance policy within 14 days of the vehicle ownership transfer. The commission noted that there was no agreement between the insurance company and the complainant for the vehicle's own damage claim on the day the accident took place. Hence, commission president Sunil T Masaraddi and member Sujata B Koralli stated in an order that there has been no deficiency of service on the part of the insurance company towards the complainant.
