[anjan_c2007]

The topic is on the insurer National Insurance Co Ltd a PSU, regarding their lifetime third party insurance policies for two wheelers issued during 1994 and 1995 for my two, 2 wheelers.

-These were priced at 8-10 times higher than the then prevailing two wheeler, third party yearly premiums.

- The lifetime insurance policy provided insurance till the cancellation of registration of the respective two wheeler. This can be found written on the red encircled portions in the two insurance documents attached below.





- Both my two wheelers have valid registrations as on date so there is no question about "cancellation of registration", whatsoever at this juncture.

- While renewing the registrations (fitness tests) during March and September 2022, the insurance policies had to be uploaded on the VAHAN portal citing their policy numbers.

- The VAHAN portal refused to register both the 1994 and 1995, lifetime third party insurance policies due to incompatibility.

- During all the past fitness tests till 2017, hard copies were submitted to the respective RTO office and accepted as valid, third party insurance policies.

- Come compulsory uploading of all vehicle documents including insurance policy on the VAHAN portal, the incompatibility and glitch was perceptible.

-I immediately contacted the National Insurance branch from where these policies were issued in 1994 and 1995.

-They did not have any records but verbally told me that both these lifetime third party insurance policies stand "cancelled".

- Not to be outdone, I lodged RTI queries regarding the validity of both the policies, wherein the reply said "records are not available at our office." Their First Appellate Authority too upheld this decision. I put a Second Appeal with the Chief Information Commissioner (CIC), New Delhi, after receiving such nebulous replies. It was heard by the CIC's office and decided on 30.08.23. The Dy CIC heard it and asked the insurer to file a reply. The insurer in their response dated 18.09.2023 gave the same old explanations citing their inability to comply with the CIC directive.





- I issued the insurer a legal notice to comply with the condition as stipulated in their insurance policy documents for both two wheelers by validating the policies and by issuing fresh, lifetime, VAHAN compatible policies or face a civil suit at the District Consumer Forum. They maintained a deafening silence.

- Insurance is a contract between two parties under the Section 10, under Chapter II of Indian Contracts Act, 1872, and cannot be rescinded or annulled under any circumstances unilaterally by either party. Such breach is liable to attract compensation under provisions of Section 73 (Chapter VI) of the Indian Contracts Act,1872, for loss or damage caused by such breach of contract.

-Today I have filed the complaint against National Insurance Co Ltd, as a civil suit at the District Consumer Forum, seeking the Hon'ble Court's intervention with directions for remedies.

As and when the hearings progress, I shall post updates here.

[bijims]

I applaud you for your efforts, and I see that the insurer is blatantly denying any responsibility on account of records unavailable. You have all the proof necessary and should get justice. Hopefully, the Consumer Forum will take appropriate action and provide suitable remedies.

[dhanushs]

Companies get away with the fact that only few take the efforts of getting into a long legal tussle. It’s really good to see people like you stepping up and voicing the concern and forcing the companies to comply to the right thing.

The best bet for the company would be to issue regular third party insurance for your bikes, till you sell it or not re-register it.

[Ltinsane]

They messed up, the policy should not have been subjected to "cancellation of registration" rather it should have been "Lifetime" of the vehicle, which is defined clearly as 15 years.
I am guessing the insurer meant 15 years while issuing the policy and destroyed documents after that time duration was completed. The case you filled can go any side and depends largely upon judge presiding.
In the end, Insurer is at fault, either be not honoring the policy or false advertisement.

[adrift@life]

hats off to your perseverance. getting fresh insurance would have been cheaper, at least somebody fights for principle these days.

[CzechItaliaMoto]

During the restoration and renewal of registration of our 1966 Jawa 250 earlier last year, even I noticed that our insurance from New India Assurance Ltd. stated that it was lifetime insurance. As we went through an agent for the same FC process, there were no hassles faced(considering that we paid 7k!) and the RC somehow clearly says that the vehicle is exempted from insurance. After reading your post, it seems like we need to give a call to the insurance company and ask if the policy is still valid. Don't know what difficulties that we will face during next renewal. I don't have the picture of the insurance copy currently but will definitely upload when I find it.

[NiInJa]

Looking at the original insurance document and registration certificate, National Insurance company should have simply 'renewed' the contract (as in, do whatever needed to create a new digital version) as a goodwill gesture towards the customer for maintaining the original documents (and the company failing to do so). Not sure why companies can't see how it will help them get new or retain old customers with such gestures.

Best of luck Sir with this. Hoping for a positive outcome.

[anjan_c2007]

An update on the issue is that the Nagpur District Consumers Forum today heard my complaint regarding the "invalidated" two third party lifetime insurance policies for my two, 2-wheelers.

Upon briefing the bench about the misrepresentation by the insurer, that is also a PSU (should lead by example) the Forum has admitted my complaint for further hearing and has directed issue of notices to the three erring Respondents from National Insurance Co Ltd.

[anjan_c2007]

The hearings in the Dist Consumer Court are being held regularly, for the claims with damages after intervals of about two months every time. The next date is in mid October 2024.

It would be surprising to note that the non- applicant M/s National Insurance Co Ltd have in their reply stated that the insurance policies purported to have been for their "lifetime", which is over and have lapsed for both the two wheelers as their registrations got cancelled after 15 years. The policies state clearly that these are valid till the "date of cancellation of their respective registrations."

In my first rejoinder to their reply I stated that I was too sorry to tutor a premier insurance service provider (founded in 1906) which is 118 years old, that cancellation of registration and fitness and re-registration post 15 years of life are covered under different sections under the Motor Vehicles Act 1988. Cancellation of registration is when due to specified reasons the registration of a motor vehicle is cancelled by the registering authority. Even before getting scrapped the owner has to apply for cancellation of registration. But fitness and re-registration are covered under a totally different section in the same Act of 1988. Having submitted two copies of currently valid registrations for both two wheelers, I have re-asserted that never have the registrations of these ever cancelled till date.

The non- applicants have also stated that no records for 1994 and 1995 for the policies are available with them. My reply is that when a lifetime insurance policy is issued, they have no authority whatsoever, to destroy such records. Can the LIC or RTO or the local Municipal Corporation destroy records for either life insurance or for motor vehicles or for land/ immovable property respectively?

It could take sometime now but the non- applicants have no strong facts and points of law for their defence as it appears from their reply. I will keep you all updated on this thread about the consumer complaint under reference.

[Abyb]

Hello, what has been the final disposal of the case? This would inform us about the attitude of the consumer courts to such disputes and also bring to our notice the various sections of MV Act.