New Delhi: The Supreme Court has slammed
the tendency of insurance companies to avoid payment of
compensation to the insured on one pretext or the other saying
"unreasonable" attitude put a serious question mark on the
credibility of the companies.
"We would like to observe that the insurance companies
in genuine and bonafide claims of the insurers should not
adopt the attitude of avoiding payments on one pretext or the
"This attitude put a serious question mark on their
credibility and trustworthiness of the insurance companies.
Incidentally, by adopting an honest approach and attitude the
insurance companies would be able to save enormous litigation
costs and the interest liability," a bench of Justices Dalveer
Bhandari and Harjit Singh Bedi said.
The apex court made the remarks while dismissing an
appeal filed by Oriental Insurance Company challenging an
order passed by the National Consumer Disputes Redressal
Commission (NCDRC) directing compensation of Rs 21.50 lakh to
M/s Ozma Shipping Company.
The compensation was awarded by the fora after a
vessel owned by the shipping company sank with cargo on April
23, 1988. The said amount was originally insured by the