United India Insurance Fined ₹50,000 for Withholding Policy Document; MACT Srinagar Awards ₹1.13 Crore Compensation

Mudasir Yaqoob
Srinagar, Mar 14: The Motor Accident Claims Tribunal (MACT), Srinagar, has imposed costs of ₹50,000 on United India Insurance Company Limited for withholding a crucial insurance policy document during the trial of a motor accident claim.

The order was passed by Presiding Officer Fayaz Ahmad Qureshi while deciding a claim petition arising out of a road traffic accident. The Tribunal awarded a compensation of ₹1,13,21,400 (Rupees One Crore Thirteen Lakhs Twenty-One Thousand Four Hundred) to the victims of the accident, along with interest at the rate of 8 percent per annum.

During the proceedings, the Tribunal observed that the insurance company, represented through its counsel Sajad Ahmad Shah, failed to produce the insurance policy document indicating the date of commencement of risk. The court noted that the document was material for proper adjudication of the claim petition and its non-production during the trial amounted to withholding of a crucial piece of evidence.

Taking serious note of the conduct, the Tribunal held that suppression of such an essential document during the proceedings justified the imposition of costs on the insurance company.

The court also expressed strong disapproval of the manner in which the defence was conducted by the insurer. It observed that the company had filed a voluminous written statement containing several irrelevant averments and unnecessary citations of statutory provisions and judgments, which, according to the Tribunal, placed an avoidable burden on the judicial record and delayed the expeditious disposal of motor accident claim cases.