Indian Premier League (IPL) franchise Rajasthan Royals were dragged to the Supreme Court over a 2012 case involving S Sreesanth. The case is regarding an insurance claim made by Rajasthan Royals over an injury sustained by Sreesanth that ruled him out of the season. While the Royals claim that Sreesanth's participation in the 2012 season was impacted due to a knee injury, the United India Insurance Company believes that the player was already carrying a toe injury, which would've prevented him from participating in the league that season anyway.
It all started when Rajasthan Royals filed an insurance claim for over Rs 82 lakh after Sreesanth was ruled out of the 2012 IPL season due to a knee injury he suffered during a practice match.
The insurance company, however, rejected the claim, arguing that Sreesanth had a pre-existing toe injury from 2011, which he failed to disclose. They believe this older injury was the true reason for his inability to play, or that it should have been disclosed to them at the time of the policy.
Maintaining their stance, the Rajasthan Royals argued that the toe injury was not a problem and that Sreesanth was playing despite carrying the injury. They maintain that the sole reason for him missing the tournament was a new knee injury sustained during the insured period.
In this case, the National Consumer Disputes Redressal Commission (NCDRC) had previously ruled in favour of Rajasthan Royals, ordering the insurance company to pay the claim. The company has now appealed this decision in the Supreme Court.
While a verdict on the decision is yet to be made, the Supreme Court bench has requested additional documents, including Sreesanth's fitness certificate, to determine if the pre-existing toe injury was ever disclosed.
A bench of Justices Vikram Nath and Sandeep Mehta after hearing brief arguments orally asked if Sreesanth's toe injury was disclosed by the IPL franchise owner to the insurance firm.
The bench also remarked that if the insurance firm was aware about the toe-injury then it should not have insured Sreesanth in the first place.
Ultimately, the top court adjourned the matter as it directed the insurance firm to give additional documents for further clarity which include the application submitted for obtaining insurance, Sreesanth's fitness certificate, etc.
What Was Discussed In Supreme Court
Additional Solicitor General Aishwarya Bhati appeared for United Insurance Company and submitted that the NCDRC order dealt with the issue on Sreesanth's pre-existing toe injury, which had no connection with the knee injury (suffered during the insurance period).
Whereas the company had basically claimed a non-disclosure of the toe injury by the IPL team while insuring the players.
Senior Advocate Neeraj Kishan Kaul appeared for the IPL team and argued that a pre-existing toe injury, on account of which the claim was repudiated by the Insurer, did not make Sreesanth incapable of playing.
Rather, it was the knee injury, suffered during the insurance period, which left him unfit.
It is IPL franchise owner's claim in court that the purpose of a policy is to ensure that a player who incurs injury during the tournament (which renders him unfit to play) is still paid by the BCCI and the concerned team.
"The toe injury did not stop him from playing. He was playing! It was during the practice session that he had a knee injury!", Kaul for Rajasthan Royals added.
Kaul also submitted that a fitness certificate was given to the insurance firm when Sreesanth joined, and the next certificate was given when he incurred the knee injury.
In response, Justice Mehta asked, "whether that certificate has disclosure about the toe injury?
The bench also orally remarked that if the pre-existing toe injury was disclosed, the insurance company could have considered not insuring the player or charging a higher premium.
For 2012 IPL season, Rajasthan Royals had obtained a 'Special Contingency Insurance for Player Loss of Fees Cover' (policy) for a total sum of Rs.8,70,75,000/- from the Insurance company.
In terms thereof, the company was liable to pay the IPL franchise for any loss of monies paid/payable to the contracted players due to their non-appearance in the tournament.
This was subject to the non-appearance having been due to circumstances mentioned in the policy, including accident/injury sustained during the policy period. The policy was enforced from 28.03.2012. On that day itself, one of the insured players - S Sreesanth - suffered a knee injury in a practice match at Jaipur.
After treatment and analysis, he was found unfit to play in the IPL 2012 tournament due to the knee injury. Under the policy, the Rajasthan Royals requested processing of claim for loss of player fees and filed a claim for Rs.82,80,000/- on 17.09.2012.
A surveyor was appointed by the insurance firm, who reported that the injury was on account of a 'sudden unforeseen and unexpected event' and the claim was within the scope of the policy.
However, the insurer claim was repudiated by the appellant on the ground that an existing injury to the insured player (Sreesanth) was not disclosed by it to the insurer.
from NDTV News- Special https://ift.tt/tl3Acqv
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