Srinagar, March 16: The Motor Accident Claims Tribunal in Srinagar has imposed a cost of Rs 50,000 on United India Insurance Company Limited for withholding a crucial insurance policy document during the trial of a motor accident compensation case, court records show.
Presiding Officer Fayaz Ahmad Qureshi passed the order while deciding a claim petition arising from a road traffic accident, directing the insurer to pay the cost for failing to produce material evidence during the proceedings.
The tribunal also awarded compensation of Rs 1,13,21,400 (Rs 1.13 crore) to the victims of the accident along with interest at the rate of 8 percent per annum, according to the order.
The case related to a road accident claim filed before the Motor Accident Claims Tribunal, where the claimants sought compensation for losses arising out of the incident.
During the course of the proceedings, the tribunal observed that the insurance company had failed to produce an insurance policy document showing the date of commencement of risk, which the court said was a crucial record for proper adjudication of the case.
The insurer was represented in the case by advocate Sajad Ahmad Shah.
“The document was material for the proper adjudication of the claim petition,” the tribunal observed in its order, adding that non-production of the policy during trial amounted to withholding of an important piece of evidence.
Taking serious note of the conduct, the tribunal held that suppression of such a significant document during the proceedings warranted the imposition of costs on the insurance company.
The court also expressed disapproval over the manner in which the defence was conducted by the insurer during the trial.
In its observations, the tribunal noted that the insurance company had filed a lengthy written statement containing several irrelevant averments and unnecessary references to statutory provisions and court judgments.
According to the tribunal, such submissions placed an avoidable burden on the judicial record and slowed the disposal of motor accident claim cases, which are meant to be handled expeditiously to provide timely relief to victims.
Motor accident claim petitions are adjudicated by special tribunals established under Indian law to ensure compensation to victims or their families in cases involving death, injury or property damage resulting from road accidents.
The tribunals are empowered to determine liability and award compensation after examining evidence, including insurance coverage, vehicle ownership and the circumstances surrounding the accident.
Legal experts say production of insurance policy documents is essential in such cases because it determines whether the insurer is liable to indemnify the owner of the vehicle involved in the accident.
Failure to produce relevant documents during trial can affect the determination of liability and may lead courts to draw adverse inferences against the party withholding such evidence.
The tribunal’s order imposing costs highlights judicial scrutiny over the conduct of parties during motor accident compensation proceedings, which courts have repeatedly said should not be unnecessarily delayed due to procedural tactics or incomplete disclosure of documents. [KNT]
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