Savita got her Honda City car insured under Motor Comprehensive policy from ABC General Insurance Co. for the period from 1-6-2017 to 31-5-2018 for a value of ₹3.75 lakh. On 15-10-2017 she sold the car to Gautam. The car

In this case, the insured Savita sold the vehicle to Gautam and it is presumed that the insurance is not got transferred to the purchaser. The insurance can be transferred to the new purchaser on specific request to the insurer. As this is not done, the insurance company is not liable for the claim. Thus the own damage claim of ₹1,39,500 is not admissible. However, if the insurance has been duly transferred to the purchaser then the claim of ₹1,39,500 as per the rules would be admissible and can be paid to Gautam. However, as regards the legal liability of third party i.e. the pedestrian who was injured, the insurers will be liable for the legal liability to the pedestrian as per the order of the court as the third party insurance is deemed to be transferred to the purchaser.