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This is an archive article published on April 22, 2009

14 years on,man waits for insurance firms to clear bills despite court orders

For the last 14 years,74-year-old K N Sethi is awaiting compliance of orders of the Punjab and Haryana High Court wherein three insurance companies were asked to clear his bills of nearly Rs 4 lakh.

For the last 14 years,74-year-old K N Sethi is awaiting compliance of orders of the Punjab and Haryana High Court wherein three insurance companies were asked to clear his bills of nearly Rs 4 lakh.

Sethi,with depleting vision,hearing and other old age problems,is forced to drag himself for yet another bout of litigation against the three firms for which he worked as surveyor/loss assessor. Despite clear directions to settle the case within three months,the companies have failed to do so,alleges Sethi.

The septuagenarian has now filed a contempt petition against the companies — National Insurance Company,Calcutta; New India Assurance Company,Mumbai and United India Insurance Company,Madras,taking note of which,Justice T P S Mann issued notices to them.

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The dispute arose in 1996 when Sethi,a resident of Sector 28-D,who runs an agency under the name of M/s K N Sethi,had moved the High Court seeking directions to the three companies to release the payment of various survey pay bills submitted by him and allot work to the petitioner. He had claimed payment of around Rs 8 lakh.

Sethi was granted a licence to act as surveyor/loss assessor under the provisions of the Insurance Act 1938 by the Controller of Insurance,Government of India. According to Sethi,he had some differences with the senior functionaries of the three companies owing to which they stopped assigning any kind of assessment work to him. Sethi had alleged he refused to give dishonest reports about the loss as demanded by the companies after which they stopped assigning him work. He further alleged that the entire amount of payments of the bill for the work already done by him for the companies was withheld.

His then petition was decided by a division bench comprising Justice R S Mongia and Justice V S Aggarwal on August 28,1996. The Bench had directed the companies to decide the dispute within three months and on verification of the claim,make the payment within a month. The companies had denied the allegations and said the bills will be decided within three months.

However,only half of the payment has been made by the companies till date. Sethi has again moved the High Court seeking directions for payment of remaining bills.

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On December 19,2007,Justice Rajesh Bindal had expressed his anguish over the functioning of companies. “It cannot be lost sight of the fact that it is only the honest people who have to bear the burden of any corrupt activities at the hands of unscrupulous persons. Sanction of fraudulent claims results in disbursement of more amount as compensation and consequent increase in insurance tariff. It is hoped that the respondents will take corrective steps in this regard,if required.” Justice Bindal also ruled that the remaining payment should be made within three months.

“Despite clear directions of the High Court,rather than making the payment,the companies ask me to appear in person in their office for no reason,” rued Sethi.

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