In Brief
The case concerns whether an insurer can deny a theft claim on a motor vehicle sold at auction. The new owner obtained insurance in their name but the policy retained the previous owner's name on the registration document due to pending transfer. When the vehicle was stolen, the insurer rejected the claim citing the policy mismatch. The Supreme Court held that under the Motor Vehicle Act, insurance policies automatically transfer to new owners, and the insurer cannot repudiate claims based on technical naming discrepancies when it knew of the transfer and received premium from the new owner. The Court awarded the claimant ₹2,42,000 plus 9% interest.
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