Lawstreet Journal

Insurance Policy condition ‘Barring Filing of Claim after Specified Time Period’, Void. – Supreme Court

Lawstreet Journal 24 Mar 2022 6:21am

Image courtesy: Lawstreet Journal Judiciary Insurance Policy condition ‘Barring Filing of Claim after Specified Time Period’, Void.  – Supreme Court

The division bench of Supreme Court comprising, Hon’ble Justices Hemant Gupta and Hon’ble V Rama Subramanian while dismissing a special leave petition filed by the Oriental Insurance Company assailing Allahabad High Court's order dated September 22, 2021 has observed that a condition in the insurance policy which bars the filing of the claim after the specified time period is contrary to Section 28 of the Indian Contract Act, 1872 ("Act") and thus void.

The Section 28 reads as follows: 

Every agreement, — 

  1. by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights; or
  2. Which extinguishes the rights of any party thereto, or discharges any party thereto, from any liability, under or in respect of any contract on the expiry of a specified period so as to restrict any party from enforcing his rights, is void to the extent.]"

Brief Of Case Before Allahabad High Court 

The Insurance Company had approached the High Court challenging the order dated January 4, 2020 passed by Permanent Lok Adalat, Muzaffarnagar, whereby the claim of Smt. Sanjesh, was allowed and Insurance Company was directed to pay Rs. 5 lacs to Smt Sanjesh under the "Mukhyamanti Kisan Evam Sarvhit Bima Yojna".

Counsel representing the Insurance Company argued that the claim was time barred. To prove his statement, he submitted that the accident took… Continue Reading...

Tagged: Supreme Court of India   Life Insurance Corporation  
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