JUBILEE LIFE INSURANCE vs SUMERA IMRAN S — 2023 CLD 544 INSURANCE-TRIBUNAL-LAHORE

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JUBILEE LIFE INSURANCE VS SUMERA IMRAN S. 118---Payment of liquidated damages on late settlement of claims---Scope---The moment the insured person dies, the succession opens and the policy proceeds or the amount of the death claim vests and devolves upon the heirs of the deceased like the property, moveable or immoveable, by operation of law as provided by the Principles of Islamic Law. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN S. 118---Payment of money in Tribunal---Payment of liquidated damages on late settlement of claims---Scope---Scheme of Insurance Ordinance, 2000, provides that the policy proceeds including the death claim should be paid to the claimant forthwith, when the same becomes due---No such provision is available in the Ordinance which permits the insurer to retain the due amount for an indefinite period and if the insurance company retains the due amount for no reason against the spirit of scheme of law that will always be at the risk and responsibility of the Insurance Company---It is the responsibility of the insurer to pay the due amount to the claimant within time and if any delay occurs, the insurer is liable to pay the liquidated damages or all the profits incurred on the due amount attracted immediately after due date. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN Ss. 116 & 118---Payment of money in Tribunal---Payment of liquidated damages on late settlement of claims---Scope---Although, there is slight difference between Ss. 116 & 118 but while deducing the analogy from S. 118 as regards the due date to make the policy proceeds/death claim by the insurer is almost the same---In S. 116, the payment becomes due when the policy matures or from the date of which the notice of such maturity is given to the insurer and further, if the insurance company is satisfied that the payment of claim is not possible to the policy holder or the nominee, the same is to be paid in Tribunal according to the terms of the section. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN Ss. 116 & 118---Payment of money in Tribunal---Payment of liquidated damages on late settlement of claims---Scope---On the due date i.e. on the expiry of grace period (nine months), the amount of the death claim becomes the ownership of the legal heirs and they are entitled to receive the amount along with profit/interest incurred thereon earned by the insurance company from the date due, till its realization. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN S. 116---Payment of money in Tribunal---Scope---Section 116 of the Insurance Ordinance, 2000, provides a procedure to the insurance company to pay the policy proceeds in the Insurance Tribunal instead of retaining the same itself, in case, it is not possible for the insurance company to discharge its liability in the normal circumstances---First part of subsection (1), S. 116 to provides a complete procedure to make the payment in the Tribunal from the date of maturing the policy, whereas, the second part of the subsection mandates that the insurance company shall apply to the Tribunal for the payment of the policy proceeds from the date on which notice of such maturity is given. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN Ss. 116 & 118---Payment of money in Tribunal---Payment of liquidated damages on late settlement of claims---Scope---Applicant filed an application under S. 116 of the Insurance Ordinance, 2000 to deposit the amount of the death claim of an insured person---Validity---Firstly, the insurance company had failed to make the payment to the claimant or deposit it in the Tribunal within nine months, as required by S. 116 of the Insurance Ordinance, 2000---Secondly, the company intentionally and deliberately retained the due amount for a long time, in order to utilize it in its business for profit or to retain it in its bank accounts to earn interest, which was not permitted by law---As a result, the insurance company was directed to pay the sum assured along with liquidated damages under S. 118 of the Insurance Ordinance, 2000, excluding the grace period of nine months provided in S. 116---Application was disposed of accordingly. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN S. 116---Payment of money in Tribunal---Scope---Simple reading of S. 116 reveals that the policy proceeds (including all claims) are to be paid to the policy holder or the legal heirs in time and in case of delay, the profit/interest earned by the insurance company while retaining the same is also to be paid to the insured person or the legal heirs as the case may be---Further, if the proceeds are deposited with the Tribunal by the insurer, the same is to be invested by the Tribunal in government securities under S. 116(5) so that the policy holder, or the legal heirs as the case may be, could avoid the effect of devaluation of the amount. Citation Name: 2023 CLD 544 INSURANCE-TRIBUNAL-LAHOREBookmark this Case JUBILEE LIFE INSURANCE VS SUMERA IMRAN 'Due'---'Owed'---Meaning.

JUBILEE LIFE INSURANCE vs SUMERA IMRAN S — 2023 CLD 544 INSURANCE-TRIBUNAL-LAHORE

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