Kerala High Court comes to aid of disabled toddy tapper

The Kerala High Court recently upheld a Lok Adalat order directing Star Health and Allied Insurance to pay ₹7.5 lakhs as compensation to a disabled toddy tapper [Star Health and Allied Insurance Company Limited v Balakrishnan KM & anr].

The toddy tapper had suffered 75 per cent permanent disability after he fell while tapping toddy from a coconut tree. The accident took place during the insurance policy period, but the insurance claim was filed after some delay. Star Health refused to pay the insurance claim.

A Lok Adalat, however, ordered the insurance company to pay ₹7.5 lakhs as compensation. It observed that mere delay in raising the claim should not defeat the rights of the insured in getting compensation that he was otherwise eligible to.

In a judgment dated March 6, the High Court dismissed Star Health's plea challenging this Lok Adalat award.

Justice Ziyad Rahman AA noted that the Adalat had rightly focused on the genuineness of the claim and the severe condition of the claimant.

"The seriousness of the injuries are specifically taken note of by the Adalat. Therefore, a person with limited financial resources, who suffered such serious injuries and disability of very high level, cannot be found fault with, for the delay, if any caused, in invoking the legal remedies by way raising a claim," the Court observed.

The judge also emphasised that while deciding such matters, courts must strike a balance between the rights of a financially strong corporate entity like Star Health and a daily wage earner who had permanently lost his means of livelihood.

"I find that this is not a fit case in which, writ jurisdiction of this court is to be invoked," the Court held.

Observing that the Lok Adalat award protected the claimant's right to live with dignity under Article 21 of the Indian Constitution, the Court refused to interfere with the insurance relief award.

The Court was dealing with a writ petition filed by Star Health against an award passed by the Permanent Lok Adalat for Public Utility Services, Kozhikode, in favour of a toddy tapper named Balakrishnan KM.

Balakrishnan had suffered serious injuries to his spinal cord, ribs, head, etc. after falling from a coconut tree while tapping toddy. A Medical Board certified that he suffered 75 per cent disability due to the accident, leaving him permanently incapacitated from continuing his work as a toddy tapper.

Balakrishnan later approached the Lok Adalat, challenging Star Health's refusal to pay compensation for the accident.

The insurance company countered that no proper claim was submitted by Balakrishnan within a 60-day-period as required under the policy conditions.

The Adalat, however, found that the accident had occurred during the policy term, making the claim genuine. It, thus directed the insurance company to pay ₹7.5 lakh as insurance benefit along with ₹10,000 as costs to Balakrishnan.

The High Court agreed with the Adalat's findings.

It referred to Section 22D of the Legal Services Authorities Act, 1987, to clarify that Lok Adalats were not strictly bound by procedural technicalities, and must follow principles of fairness, equity and justice.

The Court also took note of the Insurance Regulatory and Development Authority of India (IRDAI) circular that calls on insurance companies not to reject genuine claims merely on the ground of delay.

The Court concluded that the Lok Adalat was justified in adopting a practical and justice-oriented approach while awarding compensation to the claimant.

The insurance company was represented by advocates RS Kalkura, MS Kalesh, Harish Gopinath, H Kiran, PI Najumal Hussain and Dilmaya P.

Government Pleader Binoy Davis appeared for the Lok Adalat.

[Read Judgment]