The court affirmed that an insurance company cannot contest a claim based on the insured's status after significant delay and emphasized the need for timely processing of claims.

JUDGMENT :

1. This intra court appeal by the New India Assurance Company Limited is directed against the order dated 19th February, 2024 in WPA 26994 of 2017.

2. The writ petition was filed by a widow of a person, who had availed a group insurance policy, called Janata Personal Accident Policy. The policy certificate was issued on 8th January, 2000 for a period of 15 years which was to expire on 7th January, 2015. Unfortunately, the insured person died on account of an accident on 7.4.2010 pursuant to which a claim was lodged by the widow of the deceased.

3. The appellant/insurance company sat tight on the said claim and did not consider the claim or reject the claim by passing a reasoned order.

4. The writ petitioner having waited patiently for several years was left with no other option to approach the learned writ court in the year 2017 and filed the writ petition.

5. The writ petition was heard elaborately and the learned Single Bench has allowed the writ petition directing the appellant/insurance company to entertain and decide the claim of the writ petitioner on its own merit and release the amount along with interest at the rate applicable to a savings account in a nationalized bank from the date of claim, till the date of actual payment. This order was passed on 19th February, 2024 and the present appeal has been filed by the insurance company before this court on 13th August, 2024.

6. It is not in dispute that the appeal is time barred and consequently the appellant has filed an application under Section 5 of the Limitation Act to condone the delay of 121 days in preferring the appeal.

7. The prayer for Condonation of delay is seriously opposed by the respondents and they have filed their affidavits-in-opposition.

8. It is true that the delay is only 121 days.

9. As pointed out by the Hon’ble Supreme Court the length of delay is not material and even in cases where the delay is very marginal and if it is found that the parties were not diligent in the matter and there was unreasonableness in the approach, the courts have refused to exercise any discretion in condoning the delay. Equally, even if the delay is enormous when the court found that sufficient cause has been shown the courts have exercised discretion and condoned the delay.

10. In this case, we have to consider as to whether any discretion is required to be exercised in the matter for Condonation of delay of 121 days. The facts and circumstances of the case which are available on record, prevents us from exercising any discretion in favour of the appellant/insurance company. We support such conclusion with the following reasons. Though such conclusion may slightly touch upon the merits of the matter, we are compelled to do so on account of the arguments advanced by the learned advocate for the appellant/insurance company and that of the respondents.

11. As pointed out earlier the policy certificate was issued by the insurance company on 8th January, 2000 for a period of 15 years which was to expire on 7th January, 2015.

12. It is not in dispute that the insured person died on 7th April, 2010 i.e. within the validity period of the insurance policy. After which the widow of the deceased had filed a claim petition before the appellant/insurance company which was not decided which compelled the writ petitioner to approach the writ court for a direction in the year 2017. The writ petition was pending and finally disposed of by the impugned order dated 19th February, 2024.

13. The contention of the appellant/insurance company is that the status of the deceased is disputed/not established and, therefore, the policy claim cannot be entertained.

14. The question would be as to whether the appellant/insurance company can raise such an issue.

15. In support of his contention the learned advocate appearing for the appellant referred to the decision of the Hon’ble Division Bench in an intra court appeal in APOT 120 of 2019 dated 27th July, 2023.

16. This intra court appeal was directed