The Supreme Court has stayed an order by the National Consumer Disputes Redressal Commission (NCDRC) that directed United India Insurance Company to pay over Rs. 82 lakhs to the owner of the Indian Premier League (IPL) team, Rajasthan Royals. The payment was in relation to an injury sustained by cricketer S. Sreesanth during the 2012 IPL tournament. The insurance company had challenged the NCDRC order in the Supreme Court.
The case dates back to 2012 when Rajasthan Royals had obtained a “Special Contingency Insurance for Player Loss of Fees Cover” from United India Insurance Company for a total sum of Rs. 8.70 crores. The policy covered the team for any loss of monies paid to contracted players due to their non-appearance in the tournament, subject to certain conditions. Sreesanth, one of the insured players, suffered a knee injury during a practice match on March 28, 2012, and was found unfit to play in the tournament.
Rajasthan Royals filed a claim for Rs. 82.80 lakhs, which was initially approved by a surveyor appointed by the insurance company. However, the claim was later repudiated by the insurer on the ground that Sreesanth had a pre-existing toe injury that was not disclosed by the team. The team approached the NCDRC, which ruled in their favor and directed the insurance company to pay the insured sum.
In the Supreme Court, Senior Advocate Neeraj Kishan Kaul, representing Rajasthan Royals, argued that the pre-existing toe injury did not render Sreesanth incapable of playing, and it was the knee injury sustained during the insurance period that made him unfit. He also pointed out that the Board of Control for Cricket in India (BCCI) had taken another insurance policy for the same loss of fee, which was paid.
The Supreme Court bench, comprising Justices Vikram Nath and Sandeep Mehta, admitted the matter and stayed the operation of the NCDRC order. The court observed that Sreesanth did not play for a single day in the 2012 IPL tournament. The case will now be heard further by the Supreme Court, which will decide on the validity of the NCDRC order and the insurance company’s liability to pay the claim.