SOUTHERN RAILWAY EMPLOYEES Vs. NATIONAL INSURANCE COMPANY LTD.

JUDGEMENT

(1.) The petitioner is a co-operative society. The petitioner/society entered into an arrangement with the respondent/insurance company for issuance of a group insurance policy in respect of its members, which is known as as Janatha Personal Accident Insurance Scheme, in short known as JPAI. The scheme envisaged coverage for all the members in case of death or accident during the currency of the policy. Initially, the group insurance was taken by the society for the period 2006-2007 and the same was extended for a further period of one year, i.e., 2007-2008. The petitioner society, in furtherance to the arrangement, had paid Rs.100/- per member towards annual premium under the scheme. After the year 2008, the insurance coverage was discontinued for the reason that the same was not beneficial to the members of the society.

(2.) While the matters stood thus, it appears that during the period of coverage under the policy, 11 members of the society died and one member was injured. The society, which was entrusted with the task of making the claim on behalf of its members, had to collect the details of the members, who had died and also that of the injured member. After collection of the details, when the claim was finally submitted to the insurance company, the same was rejected by the insurance company, vide its proceedings dated 25.6.10. The competent authority, vide the said order, had rejected the claims for the reason that the same could not be considered for settlement due to the delay in submitting the claims, even though the society was aware of the details of the claimants. The said order is put to challenge in the present writ petition.

(3.) Mr.A.Jenasenan, learned counsel appearing for the petitioner/Society submits that as per the terms of the insurance coverage, the claim under the policy had to be intimated immediately, but in case of delay, a reasonable cause needs to be shown. In this case, the Society had certain difficulties in finding out the facts in support of the claim of the individual members and only after collection of the details of the individual members, the claims were submitted to the insurer. In the said circumstance, there was a delay and the delay by itself cannot be a ground for rejecting the claim of the members of the petitioner/Society.