Page 48 - The Insurance Times May 2021

had purchased fuel from a petrol pump in a can. Following under the Motor Vehicles Act is not necessary for an insurer
this, the cops procured the petrol pump's CCTV footage. On to repudiate an accident policy claim on the ground of
being confronted with video evidence, Raja confessed to drunken driving.
having burnt Rangaraj alive.
The SC held that if the insurance company is able to
Police investigation disclosed that Rangaraj had borrowed establish from the facts that the driver was under the
around Rs. 1.5 crore from several lenders, who persistently influence of alcohol at the time of the accident, it will not
troubled Jothimani for money. Rangaraj had taken three be deprived of its right to exclude the policy benefit merely
insurance policies worth Rs. 3.5 crore, with Jothimani being on the ground that the scientific tests for alcohol presence
the nominee. Jothimani decided to kill him and make it were not carried out.
appear like an accident, with the intention to claim the A division bench comprising justices U.U. Lalit, Indira
insurance amount. She approached Raja, who agreed to Banerjee and K.M. Joseph observed in the case of IFFCO
help her for money. She gave him Rs. 50,000 as advance,
Tokio General Insurance Company Ltd v Pearl Beverages
and Rs. 1 lakh was to be paid after Rangaraj's elimination. Ltd., "...in cases, where there is no scientific material, in
Police said that both the accused have been arrested and the form of test results available, as in the case before us,
they have confessed to the crime. it may not disable the insurer from establishing a case for
exclusion. The totality of the circumstances obtaining in a
HC declares all insurance companies case, must be considered."

liable to give effect to Mental Healthcare Even if the exact alcohol content present in the body was
not established, the insurer can invoke the exclusion clause
Act from 2018 in the policy contract, attendant circumstances show that
The Delhi High Court has recently held that all insurance the accident was caused while driving under the influence
companies are liable to give effect to the Mental of alcohol.
Healthcare Act, 2017 in their policies from the time it came
into force in 2018 and any delay in doing so would be CBI arrests 2 insurance officers for
"contrary to the letter and spirit of the law".
demanding Rs. 4.5 lakh bribe to settle
Justice Prathiba M. Singh said insurance regulator IRDAI is duty
bound to supervise the insurance companies and ensure that accidental death claim
they comply with the Act and it "cannot turn a blind eye" to Central Bureau of Investigation has recently arrested a
non-implementation of the same. IRDAI has to ensure that all Senior Divisional Manager and an Administrative Officer of
the insurance products issued by insurance companies are in the National Insurance Company Ltd. for allegedly
accordance with the law, the high court ordered. demanding a bribe of Rs. 4.5 lakh to settle the accidental
The court's directions came on a woman's plea whose claim death claim of a person.
for reimbursement of costs for treatment of schizophrenia After getting the complaint, CBI had laid a trap where
were rejected by the National Insurance Company Ltd on Nahida, the accused Administrative Officer posted at
the ground that psychiatric disorders were excluded from Srinagar office, had to receive Rs. 2 lakh as the first
medical cover. installment of the alleged bribe, they stated. After her
The court held that her claim for Rs. 6.67 lakh was arrest while allegedly receiving the bribe, the alleged role
of Senior Divisional Manager Ravikant Goel also surfaced
reimbursable and that she was entitled to the same. The
and he was also taken into custody.
court also imposed a cost of Rs. 25,000 on the insurance
company to be paid to the woman for forcing her to opt R.C. Joshi, CBI Spokesperson, said, "A case was registered
for litigation to claim reimbursement. against the accused on a complaint alleging therein that a
Dealing Official (later on, identified as Administrative
Blood test not necessary for insurance Officer), National Insurance Company Ltd., Srinagar has
demanded a bribe of Rs. 4.5 lakh from the complainant to
company to reject claim over drunken settle personal accidental claim of her father who died in a
driving: SC road accident."
In a notable judgment, the Supreme Court has recently held It was also alleged that the said accused would be sharing
that a breath analyzer test or blood test as contemplated the bribe money with seniors.

48 The Insurance Times, May 2021