Report No. 106

5.7. Notice of transfer to be condition precedent of transfer of rights.-

We do not also think it necessary that intimation of transfer to the insurer should be a condition precedent. In practice, such an intimation will be given in most cases, since the transferee would like to ensure that the renewal notice comes to his address. But we do not think that such an intimation should be made a condition precedent for transferring, to the transferee, the benefit of Insurance. We are adverting to this aspect, because no comment received on the Working Paper issued by us makes such a suggestion.1

All that we would recommend is, that if notice of transfer of the motor vehicle has not been given by the transferor or the transferee of before the institution of a suit based on the policy of insurance, the court may take that into account for awarding costs in such suit.

1. Para. 4.5, supra.