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2012 DIGILAW 843 (JHR)

Shabbir Hussai v. Central Coalfield Limited through its Chief Managing Director

2012-06-19

ALOK SINGH

body2012
Order Md. Isha, father of the petitioner, who was working as Mining Sardar at Sawang Colliery, has met with a road accident on 4.4.2001 and has died on 14.4.2001. His death was reported to the Central Coalfield Ltd. by his widow Smt. Taslim Khatoon on 19.4.2001. Smt Taslim Khatoon, widow of Md. Isha, also applied on 16.7.2001 to the C.C.L. for giving appointment to her son namely Shabbir Hussain, the petitioner, on compassionate ground. Accordingly, the appointment was given by the C.C.L. to the petitioner C.C.L. has forwarded the claim of the compensation to the Insurance Company on account of accidental death of Md. Isha on 9.10.2006 alongwith all the relevant papers. 2. The Insurance Company vide order dated 27.9.2007 has rejected the claim saying that the death has been reported very late, therefore, the claim could not be entertained. Feeling aggrieved, the petitioner approached to this Court. 3. I have heard Mr. Saibal Mitra appearing for the petitioner, Mr. G.C. Jha appearing for the Insurance Company and Mr. Ananda Sen appearing for the Central Coalfield Ltd. and carefully perused the records; there is no dispute that the policy under the heading Group Accidental Insurance was provided to the Coal India by the Oriental Insurance Company for the relevant year i.e. 2001. Premium of Insurance was paid to the Insurance Company by the Coal India after deducting from the salary of the employees. 4. It is admitted in the counter affidavit of Shri Manoj Kumar Singh, who is Dy. Manager of the Oriental Insurance Company Limited, that in the policy of the relevant year i.e. 2001, there was no time limit to report the death and to put forward claim to the Insurance Company. 5. Mr. Jha, learned counsel appearing for the Insurance Company has vehemently argued that even if there was no time limit stipulated to report the death and to raise the claim in the insurance policy of 2001, there is an M.O.U. arrived between the Insurance Company and C.C.L. pursuant to the meeting held in consecutive years 2003-2004, to the effect that in the event of death, it should be reported to the headquarter within 90 days and the claim should be raised to the Insurance Company within 90 days thereafter. Therefore, the claim raised by the Coal India on 9.10.2006 is in violation of the terms and conditions of the M.O.U. therefore, the Insurance Company was well within its jurisdiction by not entertaining the claim of the C.C.L. to release the payment of the compensation to the heir of the deceased Md. Isha. 6. As observed hereinabove, there was no time limit stipulated in the policy of 2001 when Md. Isha met with accident and ultimately died on 14.4.2001. In the opinion of this Court since, the Insurance Policy was purchased by the C.C.L. for the benefit of its employees and their family members on account of untimely death or accident of the employees, and premium of policy was being deducted from the salary of the employee, therefore, C.C.L. or the Insurance Company without the consent of the employees were not justified to arrive at M.O.U. to the effect that if the death is not reported or claim is not forwarded within 90 days same shall not be entertained. No claim on account of death should ordinarily be denied on the ground same was not forwarded within 90 days by the C.C.L. to the Insurance Company. However, it is expected that in normal course report of death and claim should be made within 90 days. 7. Mr. Jha, learned counsel appearing for the Insurance Company has placed reliance on the judgment of the learned single Judge of this Court in the matter of Abulash Devi vs. The Central Coalfields Ltd. & Ors., in W.P.(S) No. 2517 of 2008 decided on 28.7.2011 and has argued that in the similar facts and circumstances of the case, the learned single Judge of this Court has directed Coal India Ltd. and C.C.L. to make the payment of the compensation to the heir of the deceased employees and has not directed the Insurance Company to release the payment to the heir of the deceased employees. Learned single Judge in the case of Abulash Devi vs. The Central Coalfields Ltd. & Ors., W.P.(S) No. 2517 of 2008 has observed as under:- "Since the employee had deposited 'contribution with the employer, it is the duty of the employer to pay the group insurance amount to the employee. If the Insurance Co. denies anything contrary to the terms the Central Coalfields Ltd. has to deal with them and take appropriate step. If the Insurance Co. denies anything contrary to the terms the Central Coalfields Ltd. has to deal with them and take appropriate step. In view of the above, the respondents are directed to pay the due amount of group insurance to the petitioner with statutory interest from the date it was payable till the date of payment, within four weeks from the date of receipt/production of a copy of this order. If the said amount is not paid within the period aforesaid, the petitioner shall be entitled to get additional compensatory interest @ 10% per annum from the date the amount was payable till the date of final payment." 8. I am in full agreement with the view expressed by the learned single Judge of this Court in the case of Abulash Devi (supra). 9. In view of the discussion made hereinabove present petition is allowed Respondents No. 1 to 3 are directed to release the due amount of insurance to the petitioner with 12% P.M. interest from the date it was payable, within four weeks from today. If said amount is not paid within four weeks Respondents No. 1 to 3 shall also pay additional compensatory interest at the rate of 10% per annum. Respondent No. 4 shall reimburse the same amount to the Respondents No. 1 to 3 within 90 days. 10. This petition stands disposed of accordingly.