SC observations on the unfair stand of Insurer against Insured

SC Observations on stand of Insurer and requiring Insured to approach Supreme Court need consideration

Mahindra pick-up vehicle of the appellant, insured with the respondent met with an accident on 11.9.2014 in Nepal.  Smt.Santliya wife of Ram Parshad Tharu died and Ram Parshad Tharu was injured in the accident. 

The appellant-insured had paid medical expenses of Rs.4,09,000/- on the treatment of Ram, in addition to other payments.

The District Consumer Forum held in favour of the appellant.   The appeal of the Insurer was dismissed by the State Commission.

In revision of the Insurer, the National Commission negatived claim for medical expenses.

The appellant-insured was, therefore, compelled to approach the Supreme Court.  The Supreme Court allowed the appeal.

The observations of the Supreme Court in para 15 of the judgment dated 25.7.2023 need consideration by the Insurers.

“15.   We observe that the submissions made on behalf of the company before the NCDRC are contrary to the evidence on record as a result of which the appellant herein has been not only deprived of the aforesaid amount spent by him towards medical expenses owing to the injuries sustained by the injured Ram Parshad Tharu in the incident in respect of which there is a third party insurance coverage, but also has been constrained to approach this Court.   We find that the stand of the insurer in this case is not fair and just.”

Let us hope that the Insurers will pay heed to the observations and take salutary steps to settle the claim at their level.

Civil Appeal No.4642 of 2023 – Hem Raj Vs.  The New India Assurance Co. Ltd.