Liability of Insurance company -- Intimation to Insurance company – Requirement of – No intimation of transfer was given to Insurance Company -- Even if vehicle stand transferred to the name of another person, the liability of insurer to pay compensation to third party shall not cease -- Section 157 sub-section(1) contains the deeming provision that “the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of this transfer.”

(SC) Decided on: 14.07.2017

Deemed transfer of policy – Insurer’s liability -- Certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer -- Even if there is a transfer of the vehicle by sale, the insurer cannot escape the liability as there is deemed transfer of the certificate of insurance -- Hire purchase agreement, an agreement for lease or an agreement for hypothecation are covered under Section 2(30) of the Act of 1988 -- A person in possession is considered to be an owner of the vehicle under such agreements -- Held, an agreement for lease on hire cannot be said to be contract envisaged for exclusion under contractual liability in second proviso to Section 147(1) of the Act of 1988.

(SC) Decided on: 27.10.2015