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M. S. SONAK, JITENDRA JAIN
Bharat Hirji Dedhia, Through his attorney namely Mr. Rahul Dedhia – Appellant
Versus
Union of India, represented by the Secretary for Ministry of Finance – Respondent
JUDGMENT :
(M.S. Sonak J.)
1. Heard learned counsel for the parties. Rule in both these Petitions. The Rule is made returnable immediately at the request of and with the consent of the learned counsel for the parties.
2. Interim Application No.424 of 2022 seeking leave to amend Writ Petition No.706 of 2024 is allowed. Amendment to be carried out immediately. Reverification is dispensed with.
3. Learned counsel for the parties agree that a common order can dispose of both these Petitions. In any event, Writ Petition No.2903 of 2021 seeks to implement the Insurance Ombudsman’s award dated 03 May 2021 and Writ Petition No.706 of 2024 questions the same award dated 03 May 2021.
4. The learned counsel for the parties submitted that Writ Petition No.706 of 2024 be considered first because the fate of Writ Petition No.2903 of 2021 would depend upon the decision in Writ Petition No.706 of 2024. This is correct, and the suggestion of the learned counsel for the parties is accepted.
5. In Writ Petition No.706 of 2024, the Oriental Insurance Company Limited (“Insurance Company”) challenges the Insurance Ombudsman’s award dated 03 May 2021, directing the Insurance Company to pay to Bharat Dedhia (th
The Insurance Ombudsman acted within jurisdiction, and the Insurance Company must comply with the award, emphasizing accountability for delays and suppression of documents.
The court clarified that the monetary limit in the Insurance Ombudsman Rules applies to compensation, not to the claims themselves, allowing for broader jurisdiction.
The Insurance Ombudsman can only award compensation under regulatory rules and lacks authority to mandate policy issuance at prior premiums.
A lapsed insurance policy cannot be revived post-death, and the Insurance Ombudsman lacks authority to bypass contract terms based on equity.
A writ petition cannot proceed when a prior award exists, leaving the petitioner to seek redress through appropriate legal avenues.
The court established that the principles of natural justice require that an employer, as a stakeholder in insurance claims, must be given an opportunity to be heard in proceedings before the Insuran....
The Insurance Ombudsman lacks jurisdiction to adjudicate complaints concerning policies from proprietorships or commercial lines, as these do not fall under personal lines as defined by relevant rule....
An Insurance Ombudsman must not rely on inadmissible evidence; doing so undermines the principle of fair adjudication required in quasi-judicial proceedings.
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