The Lucknow Bench of the Allahabad High Court has imposed fine of Rs 25,000 on the Oriental Insurance Company for filing a petition challenging the order of the District Review Committee to pay compensation under the Mukhyamantri Kisan and Sarvhit Bima Yojana.
This order has been given by Division Bench of Justice Rituraj Awasthi and Justice Dinesh Kumar Singh on a petition filed by Oriental Insurance Company Limited. The insurance company had challenged the order of 15 June 2020 passed by the District Review Committee, Ambedkar Nagar, headed by the District Magistrate.
In the said order, the committee had ordered a compensation of Rs 5 lakh to the dependents of a deceased under the said insurance scheme. It was said in the petition that the dependents of the deceased did not submit the income certificate within 45 days, so they are not entitled to get compensation.
The court said in its order that the agreement made by the petitioner company under the insurance scheme clearly mentions that the order of the District Review Committee will be final. Complying with the order, the company will deposit the compensation check before the District Magistrate in a month, which the District Magistrate will provide to the beneficiary.
The court said that it is also in the agreement that even in case of incomplete documents, the decision of the committee will be final and binding on the company. With these observations, the court has ordered the payment of compensation amount in one month along with imposing damages on the petitioner company.
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