SC: Insurance Ombudsman's Award Can Be Assailed In Writ Jurisdiction

Quick Summary
The Bombay High Court has ruled that an Insurance Ombudsman's award can be challenged in a writ petition if it is found to be perverse. This decision clarifies that while Ombudsman awards are generally binding on insurers, consumers who feel aggrieved by a decision can seek relief through the courts. The court found the Ombudsman's award in this specific case to be objectionable on several grounds, including exceeding its pecuniary jurisdiction.

Court :
Bombay High Court

Brief :
An Insurance Ombudsman's award is assailable under the court's writ jurisdiction. It means that an award of Insurance Ombudsman,which is beyond defined pecuniary limit and against fundamental principles of insurance can be challenged in High Court through writ petition. In the above case the insurance has not disclosed material facts of his pre-existing diseases at the time of taking insurance and hence this act violates fundamental principle of insurance of good faith.

Citation :
Writ Petition No. 7804 of 2021

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