Repudiation of claim by insurance co. due to non insurable interest
vinod bansal
(Querist) 02 October 2010
This query is : Resolved
R/Experts
In one of my consumer complaint case,a truck theft claim was repudiated by ins. Co. on the ground of non existence of insurable interest.Facts of the case are as under:-Mr. A is registered owner of stolen vehicle and insurance is still in his name,but in the year of 2005 he executed power of attorney in favour of Mr. B and it was specifically mentioned in the power of attorney that A is Regd. owner in possession of vehicle and power of attorney holder will do all kinds of works even court case/proceedings etc. on behalf of Mr. A (Regd owner and insured)but co. repudiated the claim on the ground that Regd. owner Mr. A is having no any insurable interest in the vehicle now as he has already sold his vehicle to Mr. B.In fact Surver got signed signature of POA Holder on some blank papers in good faith,It may be possible that surveyor might have prepared some fake writings.Kindly advice,case is fixed for 20/10/10 for Arguments .Thanx in advance
s.subramanian
(Expert) 03 October 2010
Such a stand cannot be allowed to be taken by the insurance company. The Deed power of Attorney cannot transfer the rights over the vehicle in favour of the agent. The law also does not give raise to any such presumption. On the other hand it is legally crystal clear that an agent cannot make any claim of title over the vehicle against the principal. That is specifically barred. While being so,how can the insurance company take such a plea of transfer which is neither legal nor moral.
Kiran Kumar
(Expert) 03 October 2010
I agree with Mr. Subramanian.
it was merely a POA and not the complete transfer....POA does not transfer the title of the property.
in your case, only A has an insurable interest, B only acted as agent by operating the truck under the cover of POA.
vinod bansal
(Querist) 03 October 2010
Thanks to all Respected experts.
