President Dr Arif Alvi on Thursday rejecting four similar representations filed by State Life Insurance Corporation of Pakistan (SLICP) against the orders of the Wafaqi Mohtasib (WM), directed SLICP to settle claims worth Rs 1.95 million to four claimants.
He instructed the SLICP to improve and strengthen its business procedures and processes before and after the award of policies to eliminate the possibilities of future litigations causing unnecessary hassle to policy beneficiaries as well as to save the cost incurred to the state and litigants during the cumbersome litigation processes.
In his decision, the president observed that maladministration on part of SLICP was established and ordered SLICP to not only settle the claims worth Rs 1.95 million with four claimants but also pay them the profit accumulated during the entire period of payment withholding.
The president observed that the point of view of SLICP was not tenable as the policyholders were declared medically fit in the medical examination by the authorized medical officer of SLICP prior to the issuance of the policy as well as by the Field Officers who had declared the deceased policyholders healthy at the time of the issuance of the policies, therefore, the pleas of the pre-insurance ailments were hit by the principle of estoppel.
The president also made reference to the Contract Act 1872 and said that where the consent was caused by the misrepresentation of fraudulent means, the contract was not voidable.
Published in The Express Tribune, January 6th, 2023.
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