FAO No.1 of 1998 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.1 of 1998 (O&M) Date of Decision: 13.05.2011 National Insurance Company Limited ... Appellant Versus Asha Ram and Ors. ... Respondents CORAM: HON'BLE MR. JUSTICE K. KANNAN Present: Mr. Rajat Khanna, Advocate for Mr. Subhash Goyal, Advocate, the appellant. Mr. Manoj K. Tanwar, Advocate, for the respondents. ***** 1. Whether reporters of local papers may be allowed to see the judgment? NO 2. To be referred to the reporters or not? NO 3. Whether the judgment should be reported in the digest? NO K. KANNAN, J. (Oral) 1. The point involved in the appeal is the liability of insurer in a case where the transfer of the vehicle by the insured has not been informed to the Insurer and the accident involving the vehicle gives rise to a claim for damage to property and bodily injuries. The provision under Section 157 (2) relating to a notice of transfer of policy of insurance was also substantially the same under Section 103 of the Motor Vehicles Act, 1939. If only the claim is in relation to damage to property, the Insurance Company will be entitled to contend that without a specific notice of transfer of policy of insurance, the insurance company cannot be made liable. This would apply to a situation where the claim emanates from persons who have the cause of action for injuries or death resulting from accident. This has been brought through the FAO No.1 of 1998 (O&M) -2- judgments of Hon’ble the Supreme Court in “Complete Insulations (P) Limited v. New India Assurance Company Limited-1996(1) SCC 221” and “G. Govindan v. New India Assurance Company Limited-1999(2) PLR 274”. In this case, the deceased was a jeep driver and the claim was made by the representatives against the owner of the jeep and its insurer. The liability was correctly fastened upon the Insurance Company and there is no scope for interference in the award passed by the Tribunal against the insurer. 2. The award is confirmed and the appeal is dismissed. MAY 13, 2011 ( K. KANNAN ) Rajan JUDGE