• Temporary vehicle registration and issues

Hello

I have two queries:

1) I have a bike which met with an accident last month. Due to my work pressures, and a desire to get a special number, I missed out on two three opportunities to get a permanent registrations for the vehicle. The insurance company is denying the claim on the grounds that the vehicle had an expired temporary registration even when the claim was registered within the insurance duration. The bike is a premium vehicle and the damages run into some 5 lakhs.

2) After this incident if I want the vehicle to be registered , can i get it to an RTO by towing and get it registered in my name considering that the repairs will not start immediately (not sure if the forum is the right place but requesting help nevertheless)
Asked 1 year ago in Civil Law from Hyderabad, Telangana
1) Section 39 of the Motor Vehicles Act clearly prohibited the use of an unregistered vehicle. 

2) Further, Section 43 of the MV Act also specified that a temporary registration was valid only for one month, except under certain circumstances allowed in the provision. 

3) Since in this case, the temporary registration, valid for one month, had obviously expired (at the time of theft) there was clearly a violation of the MV Act.

4) please clarify is there any term in your insurance policy that insurance company will not be liable if temporary registration number has expired 

5) if insurance company is denying your claim contrary to terms of your policy file complaint before consumer forum and seek to recover the repair charges 

6) The National  Commission had clearly held that the insurance company was not entitled to repudiate the claim merely on the ground that the vehicle had not been registered.
Ajay Sethi
Advocate, Mumbai
23195 Answers
1218 Consultations
5.0 on 5.0
1) insurance company cannot repudiate the policy and refuse to pay for the repairs 

2) as held by national commission insurance company cannot repudiate policy merely on ground that vehicle had not been registeted 

3) cases before district consumer forum take around 2 years to be disposed of 
Ajay Sethi
Advocate, Mumbai
23195 Answers
1218 Consultations
5.0 on 5.0
The vehicle should have been registered within one moth from the date of purchase as per MV rules/act.  However  the Insurance company has got nothing to do with the expiration of temporary registration.  You apply for insurance claim, if they repudiate the claim, you may file a case against them in a local consumer forum seeking claim amount as well as damages for the mental agony.
T Kalaiselvan
Advocate, Vellore
13985 Answers
127 Consultations
5.0 on 5.0
The company is sending me a letter through normal mail and he has asked me to respond to it for me to get what he says "is the best possible resolution".

What are the contents of the letter issued by the company and which is the company Insurance company?  You do not have to go for a compromise until the company agrees to compensate fully.



One more advice. If I go through the consumer forum route, in your experience what will be the time taken for this to get resolved. Because I am sure once and if the judgement comes in my favor, the company will try to get to higher courts as well. 
The time taken in the lower forum will b ordinarily less than two years but in appeal courts it can be dispensed within 6 months. 
T Kalaiselvan
Advocate, Vellore
13985 Answers
127 Consultations
5.0 on 5.0
The MV Act says a temporary registration was valid only for one month, except under certain circumstances allowed in the provision.With out getting a registration number it is difficult issue a insurance policy. So at present the insurance company has no liability to pay the amount .
Ajay N S
Advocate, Ernakulam
1912 Answers
19 Consultations
5.0 on 5.0
1. The absence of a permanent registration does not preclude the beneficiary from availing the benefit of insurance but this is subject to the rider that the temporary registration should not have expired. You cannot claim insurance on the basis of a temporary registration number which has expired.

2. You can move the consumer forum if you want. There is always a possibility of a new interpretation being assigned to the law by the courts. 

3. The company can carry the matter right up to the Supreme Court.
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
5.0 on 5.0
1) you have to take the plea that the contract for insurance did not contain any clause that policy would be reudiated on grounds that car did not have permanent registration number 

2) rely upon judgement of national commission that insurance company cannot reudiated policy on grounds of non registration of vehicle 
Ajay Sethi
Advocate, Mumbai
23195 Answers
1218 Consultations
5.0 on 5.0
The insurance company has told you to furnish documentary evidence of the fact that on the date of loss the vehicle had a temporary or permanent registration which was in existence. Under the existing law the claimant, in order to succeed in his claim, has to prove that on the date of loss the vehicle had a valid temporary or permanent registration number.
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
5.0 on 5.0
From the letter by the insurance company it can be made clear that they are throwing ball in your court to fix the responsibility based on your own reply and an easy ground to repudiate your claim.
Here you have to give a carefully worded reply to the letter given by the insurer in order to avoid ambiguity.  
The insurer cleverly avoided that the insurance aspect of the vehicle and has insisted on the temporary registration alone.
The question before us is whether you are eligible for claiming insurance amount or not
Whether the insurance company finds violations of any condition for the issuance of policy or settlement of claim.
The insurance company can get into the aspect of driver licence validity.
The insurance cannot step into the shoes of the MV department .
You should avoid directly answering the question raised by the company instead insist on the inforce insurance policy and hence the claim. 
Let them repudiate the claim, you can follow it up through consumer forum.
T Kalaiselvan
Advocate, Vellore
13985 Answers
127 Consultations
5.0 on 5.0
The stand of Insurance company is right under MV act. But the same time you have to approach the Consumer court for insufficiency of services as offered at the time of taking policy and claim damages 
Ajay N S
Advocate, Ernakulam
1912 Answers
19 Consultations
5.0 on 5.0
1) as per the SC judgement in Narinder Singh  Versus New India Assurance Company Ltd.and others  using a
vehicle on the public road without any registration is not only
an offence punishable under Section 192 of the Motor
Vehicles Act but also a fundamental breach of the terms and
conditions of policy contract

2) in view of the said judgement passed in September 2014 your claim would be repudiated by the insurance company and you would not be able to recover repair costs 
Ajay Sethi
Advocate, Mumbai
23195 Answers
1218 Consultations
5.0 on 5.0
If you have not approached any forum/ court so far seeking relief/justice, better create base for that and afterwards look for the judgements favoring your cause.
For taking up the mater before IRDA you need not refer any judgement.  You can give the details, let them give their decision.  In fact you have to approach Insurance Ombudsman for such reliefs and not IRDA.  After that you can approach consumer forum.  In the consumer forum you can submit the citation of the settled laws at the time of arguments and there is no need to submit them at the initial filing stage itself. 
The fact is that your insurance policy was in force at the time and date of of the incidence, the insurance company is liable for settlement of claim.   They cannot ask about the vehicle registration at this stage while they have already issued policy for the registration number mentioned in the policy bond. 
T Kalaiselvan
Advocate, Vellore
13985 Answers
127 Consultations
5.0 on 5.0
You should engage a lawyer for your case. Finding out judgements does not help. The expenditure incurred on the lawyer's fee can be recovered by you from insurance company.
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
5.0 on 5.0

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