| Case ID |
ffeac0ad-3ad5-4c71-9049-e294980a91d9 |
| Body |
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| Case Number |
Civil Petition No. 2519 of 2010 |
| Decision Date |
Feb 14, 2011 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the petition by the State Life Insurance Corporation of Pakistan, upholding the previous decisions of the Insurance Tribunal and Lahore High Court. The courts found that the insurance policies were validly procured by the deceased, and the respondent, as the nominee, was entitled to recover the insured amounts. The court rejected the petitioners' claim of fraud due to non-disclosure of illness, as no substantial evidence was provided. The petitioners were also found to have wrongfully withheld the insurance payout, and the claim for liquidated damages was upheld. |
| Summary |
In this landmark case, the Supreme Court of Pakistan ruled in favor of Javaid Iqbal, the respondent, against the State Life Insurance Corporation of Pakistan. The case revolved around two life insurance policies purchased by the respondent's deceased wife, Mst. Naseem Akhtar Chaudhri. The insurance company contested the payout, arguing that the policies were void due to the non-disclosure of a pre-existing illness, which they claimed breached the principle of Uberrima fides, or utmost good faith. However, the court found no concrete evidence to support the insurance company's claim of fraud. The court emphasized that the insurance policies were valid and had not lapsed, as premiums were duly paid. Furthermore, the court upheld the respondent's entitlement to liquidated damages as per the Insurance Ordinance, 2000, due to the company's unjustified withholding of the payout. This decision reinforced the importance of evidence in claims of breach of contract and highlighted the obligations of insurance companies to honor valid claims promptly. The case has implications for future insurance disputes, particularly concerning the interpretation of good faith and the burden of proof in allegations of fraud. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
STATE LIFE INSURANCE CORPORATION OF PAKISTAN
|
| Judges |
MIAN SAQIB NISAR, JUSTICE,
AMIR HANI MUSLIM, JUSTICE
|
| Lawyers |
Saria Ullah Zahid, Advocate Supreme Court for Petitioners,
Nemo for Respondent
|
| Petitioners |
another,
STATE LIFE INSURANCE CORPORATION OF PAKISTAN
|
| Respondents |
JAVAID IQBAL
|
| Citations |
2011 SLD 323,
2011 CLD 860
|
| Other Citations |
Not available
|
| Laws Involved |
Insurance Ordinance, 2000,
Civil Procedure Code (V of 1908)
|
| Sections |
118,
O.VII,R.14,
O.XIII,Rr.1,3,4,
O.X II, Rr. 3 & 4
|