Law: Insurance Ordinance, 2000

Section: 118,121

Insurance Ordinance (XXXIX of 2000)--Ss. 118 & 121--- Insurance claim--- Liquidated damages---Insurance Tribunal---Time consumed in litigation---Insurance Tribunal found claimants entitled to their insurance claims and liquidated damages from the date of death of insured---Insurance company contended that Additional District Judge was not a lawfully constituted Insurance Tribunal and liquidated damages were wrongly calculated---Validity---Where no Insurance Tribunal was constituted, Federal Government could issue a notification under proviso to S.121 of Insurance Ordinance, 2000, conferring powers of tribunal to a District or an Additional District and Sessions Judge---Such notification had been issued conferring powers of Insurance Tribunal upon Additional District Judge, therefore, was rendered by validly constituted Tribunal having jurisdiction to pass the same---Insurance company was not prevented by causes beyond its control to process and pay the claims within time frame provided in S.118 of Insurance Ordinance, 2000---Claimants were forced by acts and omissions on the part of insurance company to resort to litigation---If time consumed in litigation were to be excluded by High Court, it would set a bad precedent and create a loophole in the law which could be abused by unscrupulous insurance companies to drag claimants in protracted litigation and deprive them of their lawful claims for years on end---Such would be contrary to the principles of equity, justice and fair play and good conscience and would also defeat the very Purpose for which provision was made for payment of liquidated damages---Provision for liquidated damages was incorporated in order to safeguard the interests of claimants and to ensure that settlement of claims was not unduly delayed/prolonged---There was no illegality in the order passed for legal costs and expenses incurred by them in bona fide prosecuting their claims before Courts of competent jurisdiction---Appeal was dismissed accordingly. State Life Insurance Corporation v. Mst. Sadaqat Bano PLD 2008 Lah. 461; Mst. Nusrat Malik Saleem v. Federation Of Pakistan 2006 CLD 874 and State Life v. Mst. Jafar Hussain 2009 CLD 1413…

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