Khushi Bajpai
Published on: 02 August 2022 at 18:21 IST
The Punjab and Haryana High Court today declared it plain way that the majority of cases would be addressed through conciliation proceedings before the Lok Adalats across Punjab, Haryana, and Chandigarh. This is an important judgement that is likely to transform how claim pleas in accident cases are assessed.
An insurance firm was instructed to make an assurance to this effect and additional directives applicable to the other companies as well. Additionally, Regional Managers and Standing Counsel of all insurance companies were to receive copies of the order, according to Justice Arvind Singh Sangwan’s directive.
Additionally, Justice Sangwan emphasised that any insurance company official who exhibits reckless behaviour could result in the court recommending that they be subject to disciplinary action at the higher level.
The instructions were given just over a week after Justice Sangwan called the chairman of the Oriental Insurance Company Ltd. to appear before him due to “irresponsible conduct” on the part of company employees in a case where the claimant/appellant needed plastic surgery for facial disfigurement caused by an injury he sustained as a minor.
The insurance company representatives who testified before a Lok Adalat in the case disclaimed the possibility of a peaceful resolution.
All insurance companies that appear before the Lok Adalat in the High Court or in Punjab, Haryana, or Chandigarh shall be regarded to have agreed to the affidavit and the instructions, according to Justice Sangwan. It would be “mutatis mutandis“ or equally, to representatives of other corporations.
Before ordering the High Court registry to list claimants’ appeals before the Permanent Lok Adalat at “the first instance as in the new appeals, the component of interest is not much contested by the insurance companies.”
Justice Sangwan stated, “As undertaken in the affidavit and the instructions, the officials of the insurance companies will not oppose the interest component inbuilt for a period of delay as reasonably assessed by the Lok Adalats.”
Regarding the present case, he added that appeal by the claimant, where notice of motion had already been issued in the main case, would be listed before the High Court’s Permanent Lok Adalat, where the only prayer was for compensation enhancement.
