The court determined the petitioner's entitlement to interest on an awarded insurance claim under the Insurance Ombudsman Rules.

J U D G M E N T

The petitioner instituted a claim before the 2^nd respondent insurance company, with respect to the accidental death of her husband. The claim was rejected by the 2^nd respondent insurance company, on account of which, the petitioner approached the 1^st respondent, the Insurance Ombudsman. By Ext.P2 award dated 17.03.2023, the Insurance Ombudsman found that the claim for compensation requires to be accepted and therefore, directed payment of Rs.15 lakhs within 30 days. The petitioner has instituted the captioned writ petition, essentially pointing out that the Insurance Ombudsman failed to consider the claim for interest with respect to the afore amount, and is therefore, seeking disbursement of interest at the rate of 15% per annum from 21.06.2021 (the date on which the claim petition was filed).

2. Heard Sri.Rassal Janardhanan A., the learned counsel for the petitioner, as well as Sri.George A.Cherian, the learned counsel for the insurance company.

3. Sri.George, the learned counsel for the insurance company states that the entire amount of compensation has already been paid to the petitioner on 06.04.2023. However, the question that arises for consideration is whether the petitioner is entitled for interest on the afore amount. Sri.George fairly points out that with reference to the provisions of Rule 17(7) of the Insurance Ombudsman Rules , 2017, the Insurance Ombudsman had every power and authority to consider the question as regards the awarding of interest also. He also brings to the notice of this Court the judgment of a Division Bench in Koya Kutty M.B. v. Oriental Insurance Company Ltd. , Cochin and Others [2022 KHC OnLine 26] wherein also an almost similar claim was considered, and interest at the rate of 6% was awarded in a case where the compensation amount had not been paid.

4. Having considered the submissions made as above, I am of the opinion that the petitioner is also entitled for interest at the rate of 6%, with effect from the date on which the claim petition was filed before the Insurance Company up to the date on which the amount has been paid by the insurance company, as stated above.

In such circumstances this writ petition would stand allowed, by holding that the petitioner would also be entitled for interest, as above. I record my appreciation of the fairness with which the matter was handled by Sri.George A.Cherian, the learned counsel for the insurance company.

Sd/-