Gujarat High Court
United India Insurance Co. Ltd. vs Mohanlal Nandiram on 10 November, 1998
Equivalent citations: 2001 ACJ 567, (2000) GLR 523
It is very clear that it is because of a contractual obligation the liability of the Insurance Company to indemnify the person insured arises. If the person insured is held liable, then certainly the insurance company is liable to indemnify the insured person. In the instant case the insured person having expired 45 days before the accident the respondent No. 2 was plying the vehicle of his own and was holding out as an owner of the vehicle insurer cannot be held liable.
20. Policy protects the insured owner. Either in case of a special statutory provision or by novation, amount may be claimed from the insurer but not otherwise. Insurer issuing a policy on the basis of a personal contract, personal indemnity cannot be assigned. However, with the consent of all the parties concerned, a new contract can be substituted for one that was already made. In view of such a contract, the purchaser of a vehicle from the owner of it may become a policy holder after purchasing a vehicle. After the death of a policy holder of a vehicle, person who inherited or acquired that vehicle has to get his name substituted under the agreement with the insurer if any, or has to get the policy afresh.