The Supreme Court of India has put a hold on an order from the National Consumer Disputes Redressal Commission (NCDRC) that directed an insurance company to pay Rs 82.80 lakh to a company that contracted players for the Indian Premier League (IPL) team Rajasthan Royals. The order stems from a case involving S Sreesanth, a cricketer who suffered a knee injury in 2012 during a practice match, rendering him unfit to play in the IPL that year.
The company, Royal Multisport Pvt Ltd, had obtained a special contingency insurance policy for player loss of fees cover, which would pay out in the event of a player’s non-appearance due to injury or other circumstances covered under the policy. When Sreesanth was injured, the company filed a claim with the insurance firm, United India Insurance Co. Ltd, for Rs 82.80 lakh. However, the insurance company repudiated the claim, citing a pre-existing toe injury that Sreesanth had, which was not disclosed to them.
The NCDRC ruled in favor of Royal Multisport Pvt Ltd, directing the insurance company to pay the claimed amount. However, the insurance company appealed this decision to the Supreme Court, which has now stayed the order until further notice. The Supreme Court bench, comprising Justices Vikram Nath and Sandeep Mehta, observed that Sreesanth did not play for a single day in the 2012 IPL season and has put the order on hold, effectively suspending the insurance company’s obligation to pay the claimed amount until the matter is further heard.
This case highlights the complexities of insurance claims, particularly in the context of sports and player injuries. The outcome of this case will have implications for the insurance industry and sports teams, as it pertains to the interpretation of policy terms and the disclosure of pre-existing conditions. The Supreme Court’s decision to stay the order suggests that the case is not straightforward and requires further consideration. The final outcome will depend on the court’s interpretation of the policy terms, the extent of Sreesanth’s injury, and the disclosure of his pre-existing condition.