The Supreme Court of India has stayed an order issued by the National Consumer Disputes Redressal Commission (NCDRC) that directed United India Insurance to pay ₹82.8 lakh to Royal Multisport Pvt Ltd, the parent company of the Indian Premier League (IPL) franchise Rajasthan Royals. The order was related to a claim arising from cricketer S. Sreesanth’s knee injury during the 2012 IPL season.
In 2012, Royal Multisport Pvt Ltd had contracted several players, including Sreesanth, for the IPL season and obtained a special contingency insurance policy from United India Insurance worth ₹8.70 crore. The policy was designed to cover losses arising from player non-participation due to injuries. On March 28, 2012, Sreesanth suffered a knee injury during a practice session, which was later confirmed by medical tests to have rendered him unfit for the entire season.
The franchise filed a claim of ₹82.8 lakh with the insurer in September 2012, submitting medical documentation. However, the insurance company repudiated the claim, citing alleged non-disclosure of a pre-existing toe injury suffered by Sreesanth. The NCDRC ruled in favor of Royal Multisport Pvt Ltd, terming the insurer’s rejection “unsustainable” and constituting a deficiency in service.
The Commission observed that when the fact of a knee injury is established through evidence, repudiation based on a pre-existing toe injury cannot stand. Accordingly, it directed United India Insurance to pay ₹82.8 lakh to the franchise for wrongful repudiation. Challenging the NCDRC’s decision, United India Insurance approached the Supreme Court, arguing that the Commission had erred in its interpretation of policy terms and medical evidence.
The apex court has now stayed the operation of the NCDRC order, pending further examination of the case’s merits. With this interim relief, the payment obligation of ₹82.8 lakh is on hold until the Court concludes its review. The case has been posted for further hearing, and the Supreme Court will examine the merits of the case before making a final decision. The stay order indicates that the Court is willing to re-examine the NCDRC’s decision and consider the arguments presented by United India Insurance.