The Supreme Court has stayed an order by the National Consumer Disputes Redressal Commission (NCDRC) that directed an insurance company to pay Rs 82.80 lakh to a company that had contracted players for the Indian Premier League (IPL) team Rajasthan Royals. The claim was made due to a knee injury suffered by cricketer S Sreesanth during a practice match in 2012, which made him unfit to play in the tournament. The insurance company, United India Insurance Co. Ltd, had repudiated the claim citing a pre-existing toe injury that was not disclosed by the company.
The NCDRC had passed an order in April directing the insurance company to pay the claim, stating that the repudiation was a deficiency in service. The commission noted that the policy covered loss of fees and remuneration due to non-appearance in the tournament, and that the injury was sustained during the policy period. The commission also stated that the surveyor’s report had concluded that the injury was a sudden and unforeseen event, and that the claim was within the purview of the policy terms and conditions.
However, the Supreme Court has now stayed the NCDRC’s order, observing that Sreesanth did not play for a single day in the 2012 IPL tournament. The court has fixed the matter for hearing and stayed the effect and operation of the impugned order until further orders. The insurance company had filed a plea against the NCDRC’s order, arguing that the claim was wrongly allowed.
The case highlights the complexities of insurance claims and the need for careful consideration of policy terms and conditions. The NCDRC’s order had noted that the repudiation of the claim was based on a pre-existing toe injury that was not established to have occurred or recurred during the period of insurance cover. The Supreme Court’s stay order suggests that the court may take a closer look at the circumstances surrounding the injury and the insurance claim. The matter is expected to be heard further, and the final outcome will depend on the court’s interpretation of the policy terms and conditions, as well as the evidence presented by the parties involved.