SC slams insurance cos for harassing insured
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Last Updated: Monday, August 31, 2009, 23:31
  
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 other.

"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 shipping company.

Bureau Report


First Published: Monday, August 31, 2009, 23:31


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