Consumer forum rejects 2.94L accident claim over RTO lapse

Vadodara: A consumer forum in Vadodara has rejected an accident insurance claim of a man who sold his car but failed to transfer its ownership in the records of the regional transport office (RTO).The Vadodara District Consumer Disputes Redressal Commission dismissed the complaint filed by Amit Sharma, ruling that he had no "insurable interest" in the vehicle after selling it.According to case details, Sharma sold his car to his friend Ankur Damle in August 2023 and executed a sale deed. In November 2023, Damle met with an accident while driving the vehicle, causing substantial damage.Sharma later filed an insurance claim of Rs 2.94 lakh with Tata AIG General Insurance Company Ltd, but the insurer rejected the claim. In May 2024, Sharma approached the consumer forum seeking the claim amount along with interest and Rs 25,000 each towards mental harassment and legal expenses.The insurance company argued that Sharma had violated policy conditions by not informing the RTO about the sale within 14 days, as required under the Motor Vehicles Act. The insurer also pointed out that the insurance policy was not transferred to the buyer's name within the stipulated period.After hearing both sides, the commission observed that since the vehicle had been sold and the ownership and insurance policy were not transferred as required, Sharma could not be considered to have an insurable interest in the vehicle.The forum therefore rejected the complaint, stating that Sharma was not entitled to claim insurance for the accident.