Madras HC summons CMD of United India Insurance

Madras HC summons CMD of United India Insurance
Madras HC summons CMD of United India Insurance

The Madras High Court has directed the Chairman and Managing Director of United India Insurance company to appear before it on December 22 to explain the “negligence and carelessness” of officials which were repeated in motor vehicles accident claim cases.

Justice N Kirubakaran of the court’s Madurai bench while hearing an appeal filed by the insurance firm against a tribunal award to two motorcycle riders to the tune of Rs 5.59 lakh and Rs 1.08 lakh respectively, said the tribunal had given the award on the ground that the firm had not denied the insurance coverage for the ‘offending vehicle’ which hit the two-wheeler.

The accident had taken place in Tirunelveli town on January 5, 2014, when the ‘offending vehicle’ did not have insurance. Subsequently, the car owner had taken insurance on January 7.

The vehicle had hit the motorcycle, injuring both the rider and the pillion rider.

The insurance company had denied all allegations, except regarding the insurance policy. This showed how negligently the insurance company officials acted without responsibility, the court said.

“There is no collection of materials to defend the case of the insurance company whether vehicle is insured, if verification was done. The counter statement had not been prepared properly.”

There could be collusion between the lawyers and the claimant’s counsel. This caused prejudice to the right of the insurance company. This should be seriously considered. Utmost care must be taken to defend the cases when the claim was filed for lakhs, the court said.

The officials were not giving instructions also. “This kind of negligence should be curtailed, and such mistakes should not be repeated,” it said.

Hence the judge directed the company’s CMD to appear before the court, issuing notice to him returnable on December 22.

( Source – PTI )

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