Excelsior Correspondent
SRINAGAR, May 17: Division Bench of State High Court comprising Chief Justice N Paul Vasanthakumar and Justice Ali Mohammad Magrey today held that no claim of any injured person for compensation can be rejected only on the ground of delay.
“An insurance company being registered under the Insurance Act and being controlled by the Insurance Regulatory and Development Authority is duty bound to implement the directions issued by the Authority”, the DB said, adding “the circular of IRDA mandates the insurance companies not to reject the claims on the ground of delay alone”.
“On the contrary, the Authority directs the 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 claim”, the DB further said.
The DB passed these directions in a petition challenging the orders passed by the District Forum as well as State Commission awarding compensation in the death having occurred 22 months after the fall from the school building.
After hearing both the sides, the DB observed, “the petitioner-insurance company is not justified in taking such hyper technical plea to deny the compensation which was awarded by the District Forum and affirmed by the State Commission”.
With these observations, the DB dismissed the writ petition with the direction to the petitioner to pay compensation amount of Rs 2,80,000 to the respondent within one month.
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