Insurance company cannot reject claim over pending ownership transfer: High Court

KOCHI: The High Court has ruled that an insurance company cannot reject a claim merely because the buyer of a vehicle has not completed the registration transfer. Justice C.P. Mohammed Nias stated that if the insurance premium has been paid, the change in ownership does not affect the insurer’s liability. The company can deny the claim only if there is a breach of contract.

The court made this observation while setting aside the insurance company’s decision to reject compensation to the family of a man who died in an accident, on the grounds that the vehicle ownership had not been transferred before the date of the accident. Allowing the petition filed by N.J. Joseph from Palakkad, the court directed that the insurance amount be paid.