Page 56 - Insurance Times May 2024

Insurance Regulatory And Development Registration Of FIR Not Sine Qua Non
Authority Of India V. Sahara India Life Insurance For Processing Life Insurance Policy
Company Limited
Claim In Cases Of Accidental Fall Deaths:
Summary J&K&L High Court.
The Securities Appellate Tribunal (SAT) overturned an IRDAI
order directing the transfer of Sahara India Life Insurance Life Insurance Corporation Of India & Anr Vs
policies to SBI Life Insurance Company Limited. Sahara India Hamida Bano & Anr.
Life Insurance Company Limited appealed the IRDAI's June
2, 2023 order, which mandated the transfer of Sahara's bank Summary
accounts, books of accounts, and records to SBI Life The Jammu and Kashmir and Ladakh High Court has
Insurance. The Supreme Court halted the implementation affirmed a Consumer Commission judgment that filing a First
of the IRDAI's June 2, 2023 order, stating there was no Information Report (FIR) may not always be necessary to
pressing need to move the Sahara policies to SBI. The process a life insurance claim when the insured's death was
Tribunal was instructed to consider the stay request again. caused by injuries sustained in a fall. The ruling was made
About the Case on an appeal from the Life Insurance Corporation (LIC) of
India against the ruling of the J&K State Consumer Grievance
The Securities Appellate Tribunal (SAT) order that had
suspended an order from the Insurance Regulatory and Redressal Commission, Srinagar. The Commission had
accepted the complaint and granted the next of kin of a man
Development Authority of India (IRDAI) ordering the transfer
of policies from Sahara India Life Insurance Company Limited who died after falling off the veranda of his home, a sum of
to SBI Life Insurance Company Limited was recently Rs. 6 lacs plus 9% interest. However, the LIC denied the
overturned by the Supreme Court.In an appeal filed by the claim, stating that the lack of a FIR record prevented it from
IRDAI, a division bench consisting of Justices Abhay S. Oka being processed and paid.
and Sanjay Karol delayed the SAT order, referring to it as a About the case
"drastic order."
Recently, the Jammu and Kashmir and Ladakh High Court
Sahara India Life Insurance Company Limited filed an appeal affirmed a Consumer Commission judgment that stated that
with the SAT regarding the ruling issued by the IRDAI on filing a FIR may not always be necessary in order to process
June 2, 2023, directing the transfer of Sahara India Life a life insurance claim when the insured's death was caused
Insurance policies to SBI Life Insurance Company Limited. It by injuries sustained in a fall.
was also mandated that Sahara India Life Insurance's bank Judges Sanjeev Kumar and Moksha Khajuria Kazmi made
accounts, books of accounts, and other records be moved
these observations in their ruling on an appeal from the Life
to SBI Life Insurance. The order of June 2, 2023 was issued
by IRDAI ex parte, citing Sahara Life Insurance's Insurance Corporation (LIC) of India against the ruling of the
J&K State Consumer Grievance Redressal Commission,
noncompliance with the decision dated December 30, 2020.
Srinagar. The Commission had accepted the complaint and
The IRDAI issued an order on December 30, 2020, declaring granted the next of kin of a man who had died after falling
that Sahara Life Insurance was no longer a "fit and proper" off the veranda of his home, a sum of Rs. 6 lacs plus 9%
promoter and directing that its shareholdings be transferred interest.
to another "fit and proper" promoter within a six-month
period. It also instructed Sahara Life Insurance to pursue The father of the respondents got a life insurance policy with
Sahara India for the value of Rs. 78 crore. a "Double Accident Benefit" clause. This clause stated that
LIC would be responsible for paying twice the sum assured
There was no pressing need to move the Sahara policies to if the life insured passed away as a result of an accident that
SBI, according to SAT's order of June 13, 2023, which halted occurred within the policy's term. The bench learned from
the implementation of the IRDAI's June 2, 2023 order.
the case pleadings that the insured fell from his home's
While restraining the SAT's order, the Apex Court made it veranda unintentionally while the insurance policy was in
apparent that the Tribunal might continue to hear the effect, resulting in fatal head injuries. After being
appeal on its merits. The Tribunal was instructed by the transported to the closest hospital, he passed away from
Supreme Court to consider the stay request again. his wounds en route.

The Insurance Times May 2024 51