Don’t file pleas sans merit, HC tells insurers

Chandigarh, December 14

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In a judgment that will help change the way insurance companies contest awards passed by the Motor Accident Claims Tribunals, the high court has asked them to “give a serious thought” before filing petitions.

It asked insurers to settle disputes instead of wasting money and energy on petitions san merit. The advice by Justice Surinder Gupta came on a “first appeal against orders” passed by Oriental Insurance Company Limited against Suman and other respondents.

It had challenged the compensation of Rs4.7 lakh awarded by the claims tribunal in the death of a minor in an accident. “It is unfortunate that the insurance firms are spending their energy in filing appeals in such cases and thereby, adding to their expenses instead of settling disputes,” the court said.

“Though the right of an insurance firm to file an appeal cannot be taken away in any case, being in the public service and in the interest of society, the insurers are required to give a serious thought while spending public money on such litigation,” Justice Gupta said. He said the appeal was lacking merit and was dismissed. — TNS