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IPL 2012: SC stays order directing insurer to pay Rs 82.80 lakh on account of Sreesanth's injury
While fixing the matter for hearing, the bench said, "Till further orders, the effect and operation of the impugned order shall remain stayed".
The NCDRC had passed the order on a complaint filed by Royal Multisport Pvt Ltd under the Consumer Protection Act, 1986, alleging wrongful repudiation of the insurance claim by the firm.
It noted that Royal Multisport Pvt Ltd had contracted players of 'Rajasthan Royals' in the Indian Premier League (IPL) tournament in March 2012 and had obtained a 'special contingency insurance for player loss of fees cover' for a sum of Rs 8.70 crore from the insurance firm.
The NCDRC noted that under the policy, the insurance firm was liable to pay Royal Multisport Pvt Ltd for the loss of fees, remuneration and any other monies paid/payable to the contracted players due to their non-appearance in IPL 2012, if it was due to circumstances under the policy, including injury sustained during the policy period.
It further noted that the policy was enforced from March 28, 2012, till May 28, 2012.
The NCDRC noted that on March 28, 2012, Sreesanth suffered a knee injury in a practice match at Jaipur, and later, it was concluded that he was unfit to play in IPL 2012 due to the injury.
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The Supreme Court has stayed a National Consumer Disputes Redressal Commission (NCDRC) order that directed an insurance firm to pay Rs 82.80 lakh to a company for S Sreesanth's IPL 2012 knee injury. The bench noted Sreesanth did not play in the tournament due to the injury, and the stay is in effect until further orders.
The Supreme Court on Monday stayed an NCDRC order directing an insurance firm to pay Rs 82.80 lakh to a company, which had contracted players of IPL franchise Rajasthan Royals, on account of S Sreesanth's knee injury in the 2012 tournament.
A bench of Justices Vikram Nath and Sandeep Mehta passed the order while hearing a plea filed by United India Insurance Co. Ltd against the National Consumer Disputes Redressal Commission's (NCDRC) April order.
"He (Sreesanth) did not play for a single day (in IPL 2012)," the bench observed.
While fixing the matter for hearing, the bench said, "Till further orders, the effect and operation of the impugned order shall remain stayed".
The NCDRC had passed the order on a complaint filed by Royal Multisport Pvt Ltd under the Consumer Protection Act, 1986, alleging wrongful repudiation of the insurance claim by the firm.
It noted that Royal Multisport Pvt Ltd had contracted players of 'Rajasthan Royals' in the Indian Premier League (IPL) tournament in March 2012 and had obtained a 'special contingency insurance for player loss of fees cover' for a sum of Rs 8.70 crore from the insurance firm.
The NCDRC noted that under the policy, the insurance firm was liable to pay Royal Multisport Pvt Ltd for the loss of fees, remuneration and any other monies paid/payable to the contracted players due to their non-appearance in IPL 2012, if it was due to circumstances under the policy, including injury sustained during the policy period.
It further noted that the policy was enforced from March 28, 2012, till May 28, 2012.
The NCDRC noted that on March 28, 2012, Sreesanth suffered a knee injury in a practice match at Jaipur, and later, it was concluded that he was unfit to play in IPL 2012 due to the injury.
Royal Multisport Pvt Ltd requested the insurance firm on April 23, 2012, to process the claim for loss of player fees under the policy and filed a claim for Rs 82.80 lakh in September 2012.
The insurance firm had appointed a surveyor who was provided with all medical reports, and the surveyor's report stated that the injury was on account of a 'sudden unforeseen and unexpected event' and the claim was within the purview of the policy terms and conditions.
The NCDRC noted the claim was repudiated by the insurance firm on the ground that there was a pre-existing toe injury to Sreesanth that was not disclosed by Royal Multisport Pvt Ltd to it (the insurance firm).
"When the fact of a knee injury is established through evidence such as X-rays, MRI reports and expert opinion of doctors, the repudiation based on a pre-existing toe injury, that has not been established to have occurred/recurred during the period of insurance cover, makes the repudiation a deficiency in service," the commission said.
Add as a Reliable and Trusted News Source Add Now! It directed the insurance firm to pay Rs 82.80 lakh to Royal Multisport Pvt Ltd.
Source: EconomicTimes
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