Srinagar, May 17: A high court division bench of Chief Justice N Paul Vasanthakumar and Justice Ali Mohammad Magrey today held that an insurance company can't reject the policy claim of the insured on the ground of delayed intimation.
The court held that for the insurance company, which was registered under the Insurance Act and was being controlled by the Insurance Regulatory and Development Authority, the directions issued by the said authority were a binding on it. "The said circular mandates insurance companies not to reject the claims on the ground of delay alone. On the contrary, the authority directs insurance companies to entertain the claim, process it and if there is no basis for the claim, it can be rejected. Thus it is evident that no claim of the insured can be rejected only on the ground of delayed intimation," the court said. The bench, after hearing both the sides, observed that the insurance company was not justified in taking such hyper technical plea to deny the compensation which was awarded by the district form and affirmed by the state commission. "The writ petition is dismissed and the petitioner is directed to pay the compensation amount Rs 2,80,000 to the respondent within one month," the court ordered. (JNF) |
