Law: Insurance Ordinance, 2000

Section: 118

(a) Insurance Ordinance (XXXIX of 2000)--- ----S. 118--- Payment of liquidated damages on late settlement of claims---Scope---On completion of all formalities, if the claim is not satisfied/cleared within ninety days without any fault of the claimant when it becomes due, then, under the implied term of every contract of insurance the liquidated damages must be granted. (b) Insurance Ordinance (XXXIX of 2000)--- ----S. 118---Group insurance contract---Legal heirs of insured person---Payment of liquidated damages on late settlement of claims---Entitlement of legal heirs to claim liquidated damages under section 118 of the Insurance Ordinance, 2000---Scope---Group insurance is designed to provide monetary benefits to the family of the assured person; particularly, if the assured person has not defaulted in payment of premium amount---In the present case the insurer had failed to prove that its failure to pay the claim within the stipulated time of 90 days (mentioned under section 118 of the Insurance Ordinance, 2000) was due to circumstances beyond its control---Claim of the widow and legal heirs of deceased assured person for payment of liquidated damages was well founded, and thus, they were entitled to receive it---Appeal was dismissed. Madan Gopal v. Maran Bepari PLD 1969 SC 617 ref. (c) Insurance Ordinance (XXXIX of 2000)--- ----S. 2(xlv)--- Insurance policy---Effective date---Policy/contract becomes effective from the date it is signed by the executants. Bhaiyat v. L. Chong Kha and others AIR 1934 Rangoon 342 ref. JUDGMENT SHAHID WAHEED, J.---This direct appeal is of the insurer and challenges the cogency of the judgment dated 22nd of May 2017, of the first Appellate Court, which is at variance with the judgment dated 18th of June 2015, of the Insurance Tribunal, Punjab, and we are, therefore, called upon to examine both and determine which one of them properly answers the question whether the legal heirs of the assured person were entitled to claim liquidated damages under section 118 of the Insurance Ordinance, 2000?1 2. The facts on the basis of which the above two judgments were made are straightforward and they may briefly be stated. In the wake of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492