Can Indian insurance companies escape from honouring claim taking advantage of a small mistake of insured?

The present registered owner claims for own damages for the car which he lost in a fire accident - the insured bought this car secondhand and got the registration transferred onto his name 6 weeks back - The Insurance company refuses claim since the transferee of the car did not apply for transfer of policy onto his name along with transfer of registration.

Can a company so easily swallow down its customer for such a small ignorant mistake? The company would have done the transfer of policy on charging Rs.50. Its now just for this Rs 50 mistake can it eat away Rs.4 lakhs due to its client? Apart from ethical and moral views i wish to know the legal remedy available to the present registered owner of the car. anybody to help?

Friends thanks for your responses.. photobug and Rob are not indians so apparently they didnt get my question right perspective.. ie., the scope of existing laws/case laws available/ already established the point, in india contributing to the 'doctrine of indemnity' and i called for real information from you not just opinions.. thank you each and everbody....prrkrish & srichan....shrichan if you have right information on such decided cases pl., help with information .. my email id is v_sree2001@yahoo.com

There a plenty of rulings of Supreme Court and High Courts to the effect that an Insurance Company cannot escape from liability for fault of vehicle owner to get insurance transferred.

If somebody agitate the matter with proper guidence and zeal, he/she may succeed in getting similar ruling in case of claim for own damage.

Go to the State Insurance Commisioner for the state you live in, they should be able to help you or point you in the right direction. Good luck.

Rules are rules. He had 6 weeks to act. What did he do ? He should have at least made an application. Never heard of insurance policy transfers. The previous owner would normally cancel and the new owner buy a new policy unless you are dealing with the same company . Moreover the new owner has to submit all of his particulars to the insurance company - name, age, address, liability coverage choices, previous accidents and claims records etc., transfer is never automatic.

Can you be allowed to sit in the examination room if you forgot to bring your admission ticket, you may have all other identification - it's a case by case solution.

Can you board a plane if you forgot your ticket at home. Although they may know that you are a qualified passenger as per their list.

Friend,

any Insurance company will try to get a small loop hole to escape from its liability.One should read the small print carefully before signing any policy.
Ignorance of law is no excuse.So the Insurance companies cleverly prepare the terms and conditions of a policy.
It is up to you to read them, ask some educated (in this field) friends to guide you.
approaching an attorney who deals with this subject is one option.Please do so and he may help you by guiding properly , to see that justice is done to you.

good luck.
please be care full in future ,before putting your signature .