INSURANCE OMBUDSMAN’S AWARD CAN BE ASSAILED IN WRIT JURISDICTION: ADITYA BIRLA SUN LIFE INSURANCE CO LTD v FATEMA F CHHATRIWALA[1]
In a recent landmark decision, the Bombay High Court has held that an Insurance Ombudsman’s Award can be set aside in a writ petition on the ground of perversity. Facts
In this case, the Insured obtained an ABSLI Life Guaranteed Milestone Insurance Policy in December 2017. On 10 October 2019, the Insured expired. The cause of death was recorded as
“septicemia with multiple organ failure k/c/o (known case of) Diabetes Mellitus/Hypertension (DM/HTN)”.
After a claim was lodged with the Insurer, investigations were undertaken, and it transpired that the ailments were not disclosed prior to inception and liability was denied on the ground of nondisclosure.
The Insured’s wife filed a complaint with the Insurance Ombudsman, Goa against the denial of liability and sought the payment of ₹75 lacs, and the Insurance Ombudsman allowed her claim to
the extent of ₹30 lacs. The Insurer approached the Bombay High Court under a writ petition to challenge the Award under Articles 226/227 of the Constitution.
