Chandigarh: Dealer fined ₹25k for not steering exchanged car's transfer
For failing to transfer the ownership of a city resident's old car, exchanged for a new one, which led to a speeding challan landing at his address, a car dealership will be coughing up ₹25,000 as compensation.
Terming them guilty of deficiency in service, the District Consumer Disputes Redressal Commission-DF 1 has directed the dealership, Lally Motors, to pay the complainant ₹15,000 for mental agony and ₹10,000 as costs of litigation.
Further, the dealership has also been told to clear the pending challan and transfer the exchanged car's ownership to either themselves or the new owner to whom they have sold the vehicle.
In 2019, the complainant, Dr Swaran Singh, a resident of Sector 18, had walked into Lally Motors in Industrial Area to purchase a Volkswagen Vento car.
Under a scheme, he agreed to exchange his old vehicle, valued around ₹2 lakh, which was adjusted against the price of the new vehicle.
After the deal, the dealership had issued a delivery letter-cum-undertaking, dated October 23, 2019, promising that they will be responsible for all future taxes, challans and accidents related to the old car.
But three years later, Dr Singh received a challan from the Chandigarh Traffic Police in December 2022, much to his surprise.
The photograph attached to the challan showed his old car, which had supposedly been sold to someone else by the dealership. On inspecting further, to his shock, Dr Singh learned that the dealership had failed to transfer the car's ownership to its new owner after the exchange.
Approaching the consumer commission, the complainant alleged that the car dealership sold his old car further without transferring its ownership, a violation of the Motor Vehicles Act.
The dealership was summoned by the commission but they didn't turn up and were proceeded against ex parte on October 21 2024.
Skoda Auto Volkswagen India contested the complaint, taking preliminary objections of maintainability, cause of action, jurisdiction and non-joinder of the necessary party. They alleged that so far as selling of the car went, they had nothing to do with it, and it was a matter between the dealership and the complainant.
The commission accepted that the company had no role in the dispute and dismissed the complaint against them.
However, it observed that the complainant had submitted documentary proof against the dealership, which was not rebutted in any way. Disposing of the complaint, the commission slapped a ₹25,000 penalty on the dealership, including the compensation and litigation costs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
40 minutes ago
- Mint
Behind ICICI Lombard's recent surge: What the headlines won't tell you
General insurance has caught investors' attention over the last few days. Reports indicate that the ministry of road transport and highways is considering an 18-25% hike in third-party motor insurance premiums. On cue, ICICI Lombard General Insurance, which claims 10.8% share of India's motor insurance market, surged 7% in a single day on Friday. Investor enthusiasm around the stock is not new. The stock has been outperforming over the last three years. While disappointing Q4 earnings had dampened sentiment in recent months, the latest development has breathed fresh life into the counter. Can this take the stock to new heights? Motor insurance is the mainstay For general insurers, automotive insurance constitutes a major chunk, around 30% of the business. About 60% of that is for insuring damages to third parties. Third-party insurance is compulsory according to the Motor Vehicles Act. The regulator has held premiums steady in the segment for the last four years. But with more vehicles on the road, claims and loss ratios have been on the rise. In the first half of FY25, the loss ratio for motor insurance stood at 124.8%, while that for the broader general insurance sector was much lower, at 113.2%. So, higher premiums promise to bring some much-needed relief to insurers. ICICI Lombard is a well-diversified multi-line insurer. But motor insurance constitutes 40% of its business, which is split equally between own damage and third-party damage. Health, travel, and personal accident insurance comprise the next largest segment at 29%, picking up pace over the last few years. Industry slowdown weighed on business The company has seen a robust 13.1% CAGR growth in its GDPI (gross direct premium income) over the last 17 years. In fact, FY23 and FY24 reported even faster expansion at 17-18%. But growth slowed down sharply to 8.3% in FY25. Q4 numbers were even worse, with weak investment income contributing to a 1.9% year-on-year decline in profit for the quarter. It is important to note, however, that this was an industry-wide phenomenon driven primarily by a slowdown in the sales of new vehicles during the year. With a muted 8% growth in the mainstay segment of motor insurance, the non-life insurance sector reported just 6.2% growth during the year. The new rules by the Insurance Regulatory and Development Authority (Irdai) mandating deferred accounting of long-term policies instead of billing them upfront also played a role. Adjusted for the new accounting norms, the industry reported 8.6% growth. Even as competition weighed on ICICI Lombard's group health insurance segment, it surpassed industry growth in other segments. The company's focused efforts on older vehicles and commercial vehicles, as well as its improved portfolio segmentation, have worked in its favour. Removing the impact of the new accounting norms, the company's GDPI outpaced the industry with 11% year-on-year growth. The lower loss ratio in motor insurance negated the rising losses in health and crop insurance. Overall loss ratio remained largely stable at 70.6% in FY25 versus 70.8% in FY24. Lower expense ratio continued the business' moderation in combined ratio (loss ratio + expense ratio) to 102.8%. Excluding the impact of catastrophic (CAT) losses, the ratio stood even lower at 102.4%. Its bottom line expanded by 30.7% to ₹2,508 crore during the year. Still, bogged down by the topline slowdown and brokerage downgrades, the counter corrected by as much as 4% following the earnings announcement. Also Read: United Spirits is on a high after RCB's IPL win, JP Morgan upgrade and UK FTA. Can it keep buzzing? Long-term industry prospects remain promising India is the fourth-largest non-life insurance market in Asia. But the premiums constitute only 1% of GDP, against a global average of 4%. Even compared to emerging economies, India's general insurance is underpenetrated. The total addressable market stands at $36 billion, and it has ample room for growth. Premiumization in automobiles and increasing EV adoption should support growth in motor insurance. Meanwhile, improving penetration in health, property and casualty insurance is expected to drive growth in these segments. Increasing penetration of digital insurance is also expected to push growth. Over the last three years, online motor insurance has seen much faster adoption in lower-tier cities. Against a 35% growth in online motor insurance in tier-1 cities, tier-2 and tier-3 cities have seen significantly higher growths at 70% and 110%, respectively. Also Read: These three large-cap stocks are trouncing the Sensex in 2025—so far Robust fundamentals ICICI Lombard is one of India's leading non-life insurers with 8.7% share of industry GDPI. While it commands barely 3% share of the health insurance segment, its expansive distribution through its promoter bank, 1.4 lakh individual agents and almost 1,000 virtual offices have helped it outpace the industry in other segments. It leads the property and casualty insurance segment with 13% share in fire insurance and 20% in marine insurance. It also has high double-digit shares of India's engineering and liability insurance segments. Since FY23, ICICI Lombard has outrun the industry with consistently superior fundamentals. The stock's outperformance over the last 3 years reflects this optimism. With a data analytics-driven approach, the company has been able to balance growth and risk management. Its focus on profitable growth through conservative underwriting has been bearing fruit. The combined ratio has improved over the years and is significantly ahead of the competition. Its reserves are also robust. Incurred but not reported (IBNR) utilization continued to improve during the year, indicating the robustness of reserves. The solvency ratio of 2.69x is comfortably ahead of the regulatory minimum of 1.5x and its peers. Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong? Strong outlook despite risks Anticipating a sustained slowdown in auto sales, the non-life insurance industry is likely to continue in the slow lane over the next couple of years. ICICI Lombard faces an additional risk from its health insurance segment, which has lagged the industry amid intense competition. Any further pickup in competition, spike in claims, or drop in investment income can weigh on the business. But the stiff pricing competition faced lately from public insurers in retail-focused segments should abate over the next few years, as players gradually conform to the regulatory cap of 30% on expenses of management (EOM), including commissions and promotional expenses. The company also stands to benefit from investments made in recent years towards the expansion of products and distribution in its health insurance segment. Any relief on GST in health insurance can also benefit the company. It is targeting a double-digit growth in the segment. Over the longer term, industry tailwinds should help support growth, while increasing digital penetration can improve profitability. ICICI Lombard's focus on enhancing penetration in tier-3 and tier-4 cities can be expected to drive growth for the company. Meanwhile, its conservative underwriting should support margins. Management has guided for its combined ratio to continue down the glide path to around 101.5% by FY27. Its target price has been pegged at ₹2,200 apiece, valuing the business at 32 times its FY27 earnings. This reflects an upside of 8% over current levels. For more such analysis, read Profit Pulse. Ananya Roy is the founder ofCredibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
Hans India
5 hours ago
- Hans India
As schools set to reopen in state, buses still unfit to ferry students
Hyderabad: In view of the reopening of schools, vehicles transporting students must necessarily possess valid fitness certificates. As several thousands of buses are yet to obtain the certificates, the Transport department has ramped up fitness inspections of school buses to ensure student safety. Worried parents are feeling anxious with schools set to reopen on June 12, many school buses, which their children depend on for transportation, reportedly did not secure the required fitness certificates from the transport department for the academic year. According to the transport department, of the total 25,677 buses operated by educational institutions across the state, only 17,020 of these buses have obtained fitness certificates so far. As per the rules, an annual fitness certification is required for all vehicles, assessing their mechanical state and safety attributes prior to being authorised for student transportation. Joint Transport Commissioner (Vigilance & Enforcement) Mamindla Chandrasekhar Goud urged the remaining 8,657 buses to immediately obtain fitness certification from their respective transport department offices. The JTC has strictly warned that school buses older than 15 years must not be operated under any circumstances. 'If such aged or unfit vehicles are used to transport students, not only will the vehicles be seized, but legal action will also be initiated against the respective managements,' he added. Chandrasekhar reiterated that the responsibility of maintaining educational institution vehicles lies solely with the school management. He advised that buses must be kept in good condition and experienced drivers must be employed. He also added that there will be checks on vehicles carrying students beyond their permitted capacity. The Joint Transport Commissioner stated that special inspection drives have been ordered across all districts. District-level transport officials are conducting meetings with school managements and drivers in their respective areas, he added. Telangana Auto and Motor Welfare Union, General secretary M Dayanand said that as per the Motor Vehicles Act, bus drivers must have a valid heavy vehicle driving licence and be under 60 years of age. However, this has not been followed by the institutions, and they are hiring unprofessional drivers, he pointed out. Additionally, an attendant must accompany students on every trip. Buses must be equipped with essential safety items such as a first-aid kit, fire extinguisher, and up-to-date documentation, including registration papers and a valid fitness certificate. The Transport Vigilance & Enforcement wing must ensure that the safety guideline issued by the transport department must be followed to ensure the safety for the student's transportation, said Dayanand.
Time of India
2 days ago
- Time of India
Insurance firm directed to pay 11L for unfair trade practice in settling claim
Raipur: The Chhattisgarh state consumer disputes redressal commission directed an insurance firm backed by a public-sector bank to pay Rs 11,16,801 to a Raipur-based firm for deficiency in service and unfair trade practice in settling a vehicle insurance claim. The commission also awarded Rs 50,000 for mental agony and Rs 5,000 towards litigation costs. The order, passed by President Justice Gautam Chourdiya and Member Pramod Kumar Varma, set aside an earlier ruling by the District Consumer Disputes Redressal Commission, Raipur, which dismissed the complaint as premature. The commission noted that keeping the claim pending for an extended period, especially after the damaged vehicle was handed over as per the insurer's instructions, amounted to deficiency in service and unfair trade practice. "After accepting the surveyor's assessment, instructing disposal of the damaged vehicle, and its actual disposal, it was improper for the insurer to raise further objections. Keeping the claim pending despite receiving the wreck value amounts to deficiency in service and unfair trade practice. The insurer is liable to pay the remaining Rs 11,16,801, along with compensation for mental agony and litigation costs. The district commission erred in holding the claim premature, making its order unsustainable and liable to be set aside," remarked the consumer commission on the case. The firm's car, insured with the insurance firm, met with an accident on Nov 8, 2019. The insurance company assessed the loss at Rs 11,16,801 and instructed the complainant to hand over the damaged vehicle to a salvage buyer, who paid Rs 13,30,000. The firm alleged that despite these actions and assurances of payment, the remaining amount of Rs 11,16,801 was not disbursed. A complaint was filed before the district commission seeking the balance amount and compensation. The insurance firm, in its defence, said that the claim was pending as the complainant did not provide clarifications and relevant documents regarding the incident. The state commission, however, observed that the insurer already acted upon the surveyor's settlement recommendation and instructed the disposal of the vehicle's wreckage. The commission noted that after proceeding towards settlement and the disposal of the wreckage, it was improper for the insurer to raise further objections. The insurance company has been directed to pay the remaining assessed loss of Rs 11,16,801 with 6% annual simple interest from the date of filing the complaint until realisation, along with the compensation and litigation costs.
