Law: Insurance Ordinance, 2000

Section: 118

Insurance Ordinance (XXXIX of 2000)---

----S. 118---Application on behalf of deceased husband for payment of group claim amounting Rs. 12,50,000/- along with liquated damages since the date of her husband's death till realisation---During pendency of case before Insurance Tribunal appellant/company made payment of the claimed amount---Tribunal found that appellant company was liable to payment of liquidated damages on the said principal amount and directed payment thereof---Held, that no specific analysis had been made of evidence in respect of issue framed regarding liquidated damages, on the basis of which the claim of damages was being allowed---Very act of payment of principal amount by the appellant/company was taken as withdrawal of the stance of company in the written reply and automatically entitled the respondent to liquidated damages on the principal amount---No specific issue was framed on the question of admissibility of liquidated damages---Adverse inference drawn by the Tribunal a priori on the predicated of mere payment of the insurance amount during pendency of case did not shine as an instance of safe administration of justice---Appeal was allowed accordingly.