BIG DECISION! SC judgment on 3rd party claims in 2nd hand vehicle sale: Allahabad High Court's decision overturned, says insurance company responsible for paying compensation
The Supreme Court has given a big decision in the vehicle transfer matter according to which it will be necessary for the insurance company to give third party claim.
Are you an owner of a second hand vehicle? If so, then here is important information for you. If you have bought a second hand vehicle and got the vehicle registered in your name but have not made any change in the insurance policy, then you will not get the claim if the vehicle meets with an accident.
As per the information, if the vehicle meets with an accident, then the claim for the damage caused to the vehicle i.e. the own damage component of the insurance cover will neither be given to the new owner of the vehicle nor to the person whose name is there is the insurance policy that is the seller of the vehicle.
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However, the Supreme Court has given a big decision in the vehicle transfer matter according to which it will be necessary for the insurance company to give a third party claim under any circumstances in the transfer of the vehicle.
The Apex Court, while overturning the Allahabad High Court's decision, has said that under the agreement, if a vehicle is hired from the owner of the vehicle, then along with the control of the vehicle, third party insurance is also transferred.
If an accident occurs with this vehicle after this, then the insurance company cannot escape from the responsibility of paying compensation to the victims.
Also, if there is no vehicle transfer and insurance in second hand vehicle sale, then no one will get the claim.
As per the information, an increase in claim rejection cases by the insurance companies in second hand vehicle sales has been observed.
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