"Cannot Force Citizens To Run From Pillar To Post": Bombay HC Slaps ₹1 Lakh Cost On Insurance Company For Circumventing Ombudsman's Order

The Bombay High Court on Monday, while slapping exemplary costs of Rs 1 lakh on an insurance company, ordered the Insurance Regulatory and Development Authority and the Ministry of Finance to consider coming up with a mechanism to keep a check on insurance companies as to whether they are complying with the orders of the Insurance Ombudsman.A division bench of Justices Mahesh Sonak. The Bombay High Court on Monday, while slapping exemplary costs of Rs 1 lakh on an insurance company, ordered the Insurance Regulatory and Development Authority and the Ministry of Finance to consider coming up with a mechanism to keep a check on insurance companies as to whether they are complying with the orders of the Insurance Ombudsman. A division bench of Justices Mahesh Sonak and Jitendra jain was irked to note that despite a clear order of the Ombudsman passed on May 3, 2021 directing the insurance company - Oriental Insurance Company Limited, to pay Rs 27.13 lakhs to one Bharat Dedham, the company did not pay the same, citing some or the other reason. Instances are scarce where insurance company officials are made to account for the losses caused to the insurance companies due to frivolous defences, unreasonable delays in settlement of health insurance claims, mounting interest etc.," the bench observed in its order.