HEM RAJ versus NEW INDIA ASSURANCE CO. LTD

HEM RAJ versus NEW INDIA ASSURANCE CO. LTD

The Supreme Court held that exhibits (medical bills C-19 to C-28 / P-9 to P-28) on record established that the appellant had incurred medical expenses of Rs.4,09,000 (Indian Rupee) for treatment of the injured; the portion of the NCDRC order disallowing indemnification of those medical expenses was set aside; the respondent-insurer was directed to pay Rs.4,09,000 with interest at 7% per annum from the date of filing of the complaint before the District Forum until realization and to pay Rs.30,000 as costs, to be disbursed within one month.

Parties
Appellant (insured): Hem Raj; Respondent (insurer): The New India Assurance Co. Ltd.
Jurisdiction
India
Judgment Date
25 July 2023
Procedural Posture
Civil Appeal / Judgment (supreme Court)
Outcome
Appeal allowed; portion of NCDRC order disallowing indemnification of medical expenses set aside.
Legal Topics
Indemnification, Medical Expenses, Third Party Insurance, Interest, Costs
Consumer Protection Insurance Law Motor Vehicle Accidents Indemnification Medical Expenses Third Party Insurance Interest Costs

Case Brief

Summary, issues, holding and outcome

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Parties

Hem Raj

Appellant (insured)

The New India Assurance Co. Ltd.

Respondent (insurer)

Procedural Posture

Civil Appeal / Judgment (supreme Court)

Legal Issues

  1. 1 Whether the insurer was liable to indemnify the insured for medical expenses incurred for treatment of third-party injured in the accident
  2. 2 Whether the NCDRC was correct in disallowing disbursement of medical bills on the ground that there was no evidence of payment
  3. 3 Whether the insured had produced sufficient documentary evidence of payment of medical expenses

Ratio Decidendi

The Supreme Court held that exhibits (medical bills C-19 to C-28 / P-9 to P-28) on record established that the appellant had incurred medical expenses of Rs.4,09,000 (Indian Rupee) for treatment of the injured; the portion of the NCDRC order disallowing indemnification of those medical expenses was set aside; the respondent-insurer was directed to pay Rs.4,09,000 with interest at 7% per annum from the date of filing of the complaint before the District Forum until realization and to pay Rs.30,000 as costs, to be disbursed within one month.

Court Disposition

Appeal allowed; portion of NCDRC order disallowing indemnification of medical expenses set aside.

Orders

  • Respondent-insurer to pay Rs.4,09,000 (Indian Rupee) in terms of Exhibits P-9 to P-28 with interest at 7% per annum from the date of filing of the complaint before the District Forum till realization.
  • Respondent-insurer to pay Rs.30,000 as costs to the appellant.