Legal Case Summary

Case Details
Case ID 1ef86af3-745e-468e-9717-5ed4896e9eae
Body View case body.
Case Number Writ Petition No. 17185 of 1999
Decision Date Mar 09, 2000
Hearing Date
Decision The Lahore High Court ruled that the Controller of Insurance lacks the jurisdiction to adjudicate claims made by the insured against insurance companies. The Court emphasized that the only authority of the Controller under Section 33 of the Insurance Act, 1938 is to investigate the affairs of insurance companies and direct them to take necessary actions. The petitioner, Ali Textile, was advised to approach the Claim Settlement Board under Section 47-L of the Insurance Act, which has been authorized to adjudicate claims and disputes arising under insurance policies. The Court directed the Board to resolve any application filed by the petitioner within one month, ensuring a swift resolution to their claim concerning damages caused by floods.
Summary In the case of Ali Textile (Jhang) Limited vs. Government of Pakistan, the Lahore High Court addressed the jurisdiction of the Controller of Insurance under the Insurance Act, 1938. The petitioner, Ali Textile, had lodged a claim for damages caused by floods, but the Controller stated he lacked the authority to adjudicate the claim and directed the petitioner to the Claim Settlement Board. The Court reiterated the role of the Claim Settlement Board in resolving disputes related to insurance claims, thereby reinforcing the procedural pathway for insured parties seeking redress. This ruling highlights the importance of understanding the jurisdictional boundaries of regulatory bodies in the insurance sector, ensuring that insured entities are aware of where to file their claims for efficient resolution.
Court Lahore High Court
Entities Involved Messrs Orient Insurance Company Limited, Pakistan Industrial Credit and Investment Corporation (PICIC)
Judges MALIK MUHAMMAD QAYYUM, J
Lawyers Dr. A. Basit, M. Saleem Sehgal, Ch. Maqsood Ahmad
Petitioners ALI TEXTILE (JHANG) LIMITED
Respondents , GOVERNMENT OF PAKISTAN in the Ministry of Commerce, Department of Insurance, Pak Secretariat, Islamabad, Pakistan General Insurance Company
Citations 2000 SLD 2178, 2000 PLD 418
Other Citations Not available
Laws Involved Insurance Act, (IV of 1938), Constitution of Pakistan, 1973
Sections 33, 47-L, 199