Court criticises insurance company for delaying claim

April 2nd, 2009 - 10:08 pm ICT by IANS  

New Delhi, April 2 (IANS) The Delhi High Court Thursday came down heavily on Oriental Insurance Co (OIC) Ltd for harassing the insured person’s family by indulging in frivolous litigation to deny their claims and imposed costs of Rs.60,000 on it.
“This is a classical example of an insurance company raising frivolous pleas resulting in wastage of judicial time, delay of trial, harassment and delay in payment of compensation to the legal representatives of the deceased victim of a road accident,” Justice J.R. Midha said.

The family of a 16-year-old teenager had claimed the insurance money following his death in a road accident 13 years ago while he was going on his bicycle.

The insurance company, however, did not pay the claim, saying the vehicle was not properly insured.

They family of the deceased then approached a tribunal, which upheld their claim, and imposed costs of Rs.25,000 on the insurance company. The company then approached the high court against the tribunal’s order.

Taking strong exception to such kind of petitions on frivolous grounds, the court dismissed its plea and imposed costs on it.

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