ORIGINAL JURISDICTION - Orissa High Court

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place from the date of sale when the transferee purchases the vehicle,
and from the date of death of owner when the successor-in-interest
succeeds to the possession of the vehicle. Registration certificate does not
confer title. Change of entry in the registration certificate does not convey
the ownership. Transfer of ownership of motor vehicle is governed by the
provisions of Sale of Goods Act or law of succession as the case may be. In
this connection, decisions of Kerala High Court in V. Parakashan –vrs.-
Pankajakshan and another: 1985 CRI.L.J. 951 and of Bombay High Court
in Virendrakumar J. Handa –vrs.-Dilawarkhan Alij Khan and others :
1992 CRI.L.J.2476 may be referred to.
12. Section 157 of the M.V. Act lays down provisions relating to transfer of
certificate of insurance in the event of transfer of ownership of a motor
vehicle. It reads:
INDIAN LAW REPORTS, CUTTACK SERIES [2010]
“ 157. Transfer of Certifificate of Insurance :-
(1) Where a person in whose favour the certificate of insurance has
been issued in accordance with the provisions of this Chapter
transfers to another person the ownership of the motor vehicle in
respect of which such insurance was taken together with the policy
of insurance relating thereto, the certificate of insurance and the
policy described in the certificate shall be deemed to have been
transferred in favour of the person to whom the motor vehicle is
transferred with effect from the date of its transfer.
(2) The transferee shall apply within fourteen days from the date
of transfer in the prescribed form to the insurer for making necessary
changes in regard to the fact of transfer in the certificate of insurance
and the policy described in the certificate in his favour and the
insurer shall make the necessary changes in the certificate and the
policy of insurance in regard to the transfer of insurance.”
The language of sub-section (1) of Section 157 of the M.V. Act is
unambiguous in stating that certificate of insurance as well as the policy
described in the certificate shall be deemed to have been transferred in
favour of the transferee with effect from the date of its transfer. Transfer of
insurance policy is automatic. Therefore, in case of death of the insured,
transferee in possession has to be deemed to have been covered by the
policy.