Sbi Life Insurance Company Limited v. The Insurance Ombudsman
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 14.06.2024
CORAM
THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN W.P.No. 10480 of 2021 and W.M.P.No.11078 of 2021 SBI Life Insurance Company Limited, Central Processing Centre, 7th Level (D Wing) & 8th Level Sea Woods Grand Central Tower II, Plot No.R1, Sector 40, See Woods, Nerul Node, Thane District, Navi Mumbai - 400 706.
....
Petitioner Vs
1. The Insurance Ombudsman, State of Tamil Nadu & Puducherry, Jatima Akthi Court, 4th Floor, No.453, (Old 312), Anna Salai, Teynampet, Chennai - 600 018.
2. V.Mala ....
Respondents Prayer:- Writ Petition filed under Article 226 of Constitution of India for the issuance of Writ of Certiorari, calling for the records of the first respondent culminating into Award No.IO/CHN/A/LI/0133/2020-21, dated 18.03.2021, in so far as it has allowed the claim of the second respondent.
For Petitioner : Ms.M.Sandhiya for M/s.Rank Associates For R1 : Mr.N.Vijayaraghavan for M/s.M.B.Gopalan Associates For R2 : Mr.M.Sarfudeen Ali
ORDER
This Writ Petition has been filed as against the award passed by the Insurance Ombudsman dated 18.03.2021.
2. Heard the learned counsel appearing on either side and perused the materials available on record.
3. It is seen that the writ petition itself is not maintainable, but the petitioner, being the Insurance Company, challenging the award passed by the Insurance Ombudsman. The issue involved in this writ petition has been already dealt with by this Court in W.P.No. 27132 of 2022 dated 17.04.2024 and the relevant portion of the order is extracted hereunder :
"6. The High Court of Calcutta in the case of Life Insurance Corporation of India -vs- The Insurance Ombudsman (Order dated 22.03.2017 in W.P.No.2299 (W) of 2016) held that in order to approach a writ court,
an Insurance Company has to have a cause of action. A cause of action will arise if any right of the Insurance Company stands violated. An award passed by an Insurance Ombudsman cannot be construed to violate any right of the Insurance Company. Therefore, they cannot approach a writ Court as a party aggrieved by the award of the Insurance Ombudsman. The Insurance Ombudsman is appointed by the Insurance Companies. The Rules laid down are that the Insurance Ombudsman is set out to decide on the complaint relating to the insurance lodged with the highest of the complainant. Therefore, the Writ Petition itself is not maintainable to challenge the award passed by the Ombudsman.
7. The above said order passed by the learned Single Judge of the High Court of Calcutta was also confirmed by the Division Bench of the High Court of Calcutta in Life Insurance Corporation of India -vsThe Insurance Ombudsman (Order dated 15.09.2017 in M.A.T 645 of 2017 + CAN 6245 of 2017) and it was held that if the complainant accepts the decision, which has been done in the instant case, the insurer has to comply with the award of the Ombudsman as stipulated by Rule 16(6) of the Rules. The binding character of the recommendation or as the case may be, of an award of the Ombudsman arises only when the complainant has accepted the decision. Further, there has been a fundamental fallacy in the approach of the petitioner to the recommendation of the award of the second respondent. Once the nominees of the deceased has unequivocally accepted the award, the petitioner ought to have treated the said award of the Ombudsman as a binding edict and any attempt on their part to wriggle out of the same, would be derogatory to the scheme framed by themselves and would tantamount to
procrastination of the statutory mandate. Therefore, the Writ Petition itself is not maintainable and it is liable to be dismissed."
4. In view of the above, this Court finds no infirmity or illegality in the award passed by the Insurance Ombudsman dated 18.03.2021. Thus, the writ petition is devoid of merits and is liable to be dismissed. Accordingly, this writ petition stands dismissed. Consequently, connected miscellaneous petition is closed. No costs. 14.06.2024 Internet : Yes Index : Yes/No Speaking/Non-speaking order Lpp To The Insurance Ombudsman, State of Tamil Nadu & Puducherry, Jatima Akthi Court, 4th Floor, No.453, (Old 312), Anna Salai, Teynampet, Chennai - 600 018.
G.K.ILANTHIRAIYAN, J.
Lpp W.P.No. 10480 of 2021 and W.M.P.No.11078 of 2021 14.06.2024