Suri.Sravan Kumar (senior) 27 February 2010

proof of service

x sold vehicle to y and y got the vehicle transferred on his name. x failed to inform insurance co about the sale of vehicle. y sent a letter to insurance co through certificate of posting to transfer the policy on his name. Meanwhile the vehicle involved in the accident. Insurance Co repudiated the claim stating that y is not insured and informed the same to x. y moved consumer forum. Insurance co pleaded about non receipt of UCP letter. But the forum decided the complaint in y's favour stating that certificate of posting is deemed service.

pl tell me whether the letter sent under UCP falls under deemed service when the co denied receipt of this letter. Any citations to substantiate.

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5 Replies

DR.SANAT KUMAR DASH (Eye Specialist) 27 February 2010

YES, UNDER CERTIFICATE OF POSTING WILL BE PROOF OF SERVICE OF LETTERS MOSTLY IN LOCAL AREA. HOWEVER REGISTERED POST WITH AD & SPEEDPOST ARE AUTHENTICATE PROOF OF SERVICE.

Suchitra. S (Advocate) 27 February 2010

Sir, I do not know any citations. But UCP do fall under deemed service.

Advocatus Diaboli (Advocatus Diaboli) 02 March 2010

Sir,

Letter sent under UCP is not at all deemed service. UCP only proves the posting of the letter but by any stretch of imagination it is not deemed service. (This is the position laid down by Hon;ble Apex Court. Though I do not remember the citation)

On the other hand a letter sent under registered post to the correct address of the reciepient is deemed to be valid service under section 27 of the general clauses act.

For more information please refer to the case laws on negotiable instruments act where you will find many references to service of notice under registered post as well as under UCP

As far as Mr. Shravan Kumars problem is concerned once a motor vehicle is transferred, U/s 157 of the Motor Vehicles Act, there will be deemed transfer of the insurance. Hence Insurance company can not deny its liability.

Gundlapallis (Advocate) 04 March 2010

Dear Advocatus Diaboli : The objective of incorporation of sections pertaining to Insurance in Motor vehicle act is purely for the benefit of third parties - not for the benefit of transferee of the vehicle. When the claim is for own damages the company will straightly repudiate on the ground that there is no contract between the Ins. co and the transferee of the vehicle. Mr. Shravan's case appears to be claim for own damages.

Mr. Shravan : I have a case almost similar at hand now. Contact me. We can exchange some useful information.