[Mr.Boss]

Originally Posted by perty

insurance policy is still on our name, i.e. not been transferred to the current RC owner of the car.

When ever I renew the policy with New India Assurance, they stamp the below comment "Insurance to be transferred to new owner within 15 days of change in ownership in RC, else the Insurance is not valid" Doesn't this mean the new owner is driving with an invalid insurance?

[Dry Ice]

Originally Posted by perty

Thank you for the response.
Going through the legal notice in more detail, I found that the change in ownership is reflected there as well. The first respondent is the current owner (as per the updated RTO records), the second respondent is the insurance company and we have been made the 3rd respondent as the insurance policy is still on our name, i.e. not been transferred to the current RC owner of the car.

The car ownership was transferred last year and the incident happened in Jan 2016, i.e. well after the transfer was effectuated in the RTO records.

What would our liability be in this situation ?

Originally Posted by Mr.Boss

When ever I renew the policy with New India Assurance, they stamp the below comment "Insurance to be transferred to new owner within 15 days of change in ownership in RC, else the Insurance is not valid" Doesn't this mean the new owner is driving with an invalid insurance?

+1

I guess the second owner is in a soup now.

From the IRDA website -

Q. Can I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name?
A. No. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise the claim is not payable. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance.

http://www.policyholder.gov.in/Faqli...?CategoryId=78

[Rahul Rao]

Originally Posted by Mr.Boss

When ever I renew the policy with New India Assurance, they stamp the below comment "Insurance to be transferred to new owner within 15 days of change in ownership in RC, else the Insurance is not valid" Doesn't this mean the new owner is driving with an invalid insurance?

I had discussed this with a insurance co lawyer some years ago, and he had said that only the comprehensive part of the insurance becomes invalid. The third party part continues to remain valid. There is no provision for cancellation of TP part once policy is issued.

Rahul

[perty]

Originally Posted by Rahul Rao

I had discussed this with a insurance co lawyer some years ago, and he had said that only the comprehensive part of the insurance becomes invalid. The third party part continues to remain valid. There is no provision for cancellation of TP part once policy is issued.

Rahul

Correct. In the absence of a transfer of the insurance policy to the new owner, the own damage component of the insurance is not valid anymore, but the third party component continues to remain valid. In fact, the insurance companies earlier used to reject third party damage claims if the transfer had not happened, but this has been removed now and they do not have that recourse. They need to honour the third party liability claims. In some cases, the Supreme Court has held that the insurance company can recover (not sure if it's full or partial) the claim amount from the owner of the vehicle.

I consulted a reputed lawyer about my particular case, i.e. RC transferred to new owner but insurance not transferred and provided all the supporting documentation:
1] Documents from dealership confirming receipt of old vehicle
2] Invoice for new vehicle which shows the deduction in lieu of exchange
3] RC extract confirming ownership transfer of old vehicle

The legal opinion is that the above supporting documents are sufficient to ensure that the previous owner does not have a liability in this situation.

Lesson learnt : Research more thoroughly on team-bhp about procedures involved in vehicle purchase/transfer/resale and follow them diligently !