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2026 Supreme(Online)(Ker) 12593

IN THE HIGH COURT OF KERALA AT ERNAKULAM
N.NAGARESH, J
THOMAS ABRAHAM – Appellant
Versus
NATIONAL INSURANCE COMPANY LIMITED – Respondent
WP(C) NO. 6629 OF 2026



Advocates:
For the Appellants/Petitioners: SRI.SIJI ANTONY, SRI.P.M.JOSEPH, SRI.MANOJ GEORGE, SMT.ASWANI V. DEV
For the Respondents: SRI.GEORGE A. CHERIYAN

Remuneration under contractual appointment should not fall below specified limits, even with target shortfalls.

Headnote:The petitioner, a retired Development Officer of the respondent company, engaged under the Contractual Appointment of Business Associates Scheme, 2016, claims unpaid remuneration. The scheme requires that remuneration shall not be reduced below 40% of the last drawn salary despite shortfall in target achievement. The court directed the respondent to consider the petitioner's representation (Ext.P11) and reach a decision within two months. The petitioner sought direction for payment of arrears and minimum remuneration for the period of engagement.

Table of Content
1. claim for unpaid remuneration under contractual appointment. (Para 1 , 2)

JUDGMENT Dated this the 20th day of February, 2026 The petitioner is a retired Development Officer of the

1st respondent-Company and was engaged as a Business Associate under the Contractual Appointment of Business Associates Scheme, 2016.

2. The engagement commenced as per contract note dated 01.08.2023 and was subsequently renewed for the period 01.04.2024 to 31.03.2025 as per renewal contract dated 19.06.2024. The petitioner’s grievance relates to non-payment of remuneration for both performance periods.

3. For the first period (01.08.2023 to

31.03.2024), the petitioner procured premium of ₹70,66,415.60 as certified by the respondents. As per the Scheme under Ext.P2, he became entitled to ₹6,48,556/-, but only ₹4,19,839/- was disbursed. The balance arrear of ₹2,28,717/- remains unpaid.

4. For the second period (01.04.2024 to

31.03.2025), the engagement was renewed with a target of ₹1.50 Crores. The petitioner procured premium exceeding ₹80 lakhs. However, only ₹38.7 lakhs was credited under his code as reflected in the performance statement and no remuneration has been paid.

5. Under the governing Scheme read with Circular dated 11.03.2024, even in case of shortfall in achievement of target, remuneration shall not be reduced below 40% of the last drawn basic salary of ₹92,070/- per month. The petitioner therefore claims at least the minimum guaranteed remuneration for the second period. Despite repeated communications and representations, no payment has been made and no speaking order has been passed.

6. The respondents, being a State-owned Company and its officers responsible for implementation of the Scheme and disbursement of remuneration, are duty bound to release the admitted arrears for the first period and the minimum guaranteed remuneration for the second period and to conduct reconciliation of premium accounts as requested under Ext.P13. The petitioner therefore seeks appropriate directions for release of arrears, payment of minimum remuneration and reconciliation audit with consequential disbursement.

7. I have heard the learned counsel for the petitioner.

8. The petitioner has been engaged as Business Associate under the National Insurance Company Limited. The petitioner has been appointed under the National Insurance Company Limited (Contractual Appointment of Business Associates) Scheme, 2016.

9. Going through Ext.P4, it is doubtful whether the engagement of the petitioner will make the petitioner an employee of the National Insurance Company.

10. Be that as it may, the petitioner has raised his grievance before the 1st respondent filing Ext.P11 representation. In the facts of the case, I am of the view that without going to the status of the petitioner, the matter can be disposed of directing the 1st respondent to consider Ext.P11 representation submitted by the petitioner.

The writ petition is accordingly disposed of directing the 1st respondent to consider Ext.P11 representation and take appropriate decision thereon within a period of two months from the date of receipt of a copy of this judgment.

Sd/-

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