Insurance Act -- Motor Vehicle Insurance -- Surrender of Vehicle by Insured to Financer
It is a well-settled position of law that a contract of insurance is a personal contract between the insured and the insurance company only. No third party can claim indemnification under such a contract. A financer who receives possession of a vehicle by surrender from the original insured does not thereby become the owner of the vehicle. In the absence of privity of contract between the financer and the insurance company, the insurance company cannot be compelled to indemnify the financer for loss of the vehicle, even if the loss occurred while the vehicle was in the financer's possession.
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