Mst. RAZIA AMEER vs STATE LIFE INSURANCE Ss — 2023 CLD 1156 INSURANCE-TRIBUNAL-LAHORE

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Mst. RAZIA AMEER VS STATE LIFE INSURANCE Ss. 122, 75, 118(1) & 118(2)---Limitation Act (IX of 1908), First Sched., Part IV, Arts. 86-a & 86-b---Insurance petition---Insurance claim, payment of---Liquidated damages, computation of---Time period whereafter Liquidated damages become due---Scope---During the currency of the insurance petition, State Life Insurance Corporation ('the Corporation') paid the petitioner (widow/nominee of the insured) an amount on account of group insurance claim, but after almost five years of death of the insured---Matter pertaining to the liquidated damages was, however, later finalized having remained pending up to the Supreme Court---Liquidated damages were decreed and the decree-holder filed execution petition before the Insurance Tribunal ('the Tribunal') for recovery of liquidated damages up to time of finalization of matter before the Supreme Court---Objection of the judgment-debtor/corporation was that the petitioner was not entitled to claim the liquidated damages after the date on which she had happily received the principal amount of group insurance---Validity---Section 118(1) of the Insurance Ordinance, 2000 ('the Ordinance 2000') revealed that the policy holder was required to file the claim in prescribed manner to the Insurance Company('the Company') in terms of Arts. 86-a & 86-b of Part IV of First Schedule of the Limitation Act, 1908; and the Insurance Company was bound to make payments within 90 days; failing which the Company would have to pay liquidated damages as provided under S. 118(2) of the Ordinance 2000---Liquidated damages were payable for the period during which the failure (of the Company) continued, meaning thereby that the Company would be penalized by imposing liquidated damages for the period, the amount which was required to be paid to the policy holder/nominee/legal-heir(s), was retained by the Insurer/Company, for no reason but, in order to earn the profit by utilizing the same in commercial activities or investing or retaining in bank---Petitioner/decree-holder, in the present case, had received the proceeds of group insurance(principal amount); thus, neither principal amount was retained nor utilized by the judgment-debtor/Corporation, which was not liable to pay liquidated damages after the date when the principal amount had been paid to the petitioner---Petitioner/decree-holder was only entitled to receive the liquidated damages from the date of filing of the claim with the Corporation till the date when the principal amount was received by her, excluding period of 90 days available to the Corporation to decide the claim under S. 118 of the Insurance Ordinance, 2000; Insurance Tribunal directed the Judgment-debtor/Corporation to submit cheque after calculating the amount of liquidated damages for the said period---Execution petition was disposed of accordingly.

Mst. RAZIA AMEER vs STATE LIFE INSURANCE Ss — 2023 CLD 1156 INSURANCE-TRIBUNAL-LAHORE

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