New Delhi, Oct 13 (UNI) The Supreme Court today stayed an order of the National Consumer Disputes Redressal Commission (NCDRC) that had directed United India Insurance Company Ltd. to pay over Rs 82 lakh to the owner of the Rajasthan Royals franchise in connection with cricketer S. Sreesanth’s injury during the 2012 Indian Premier League (IPL) season.
A Bench, comprising Justices Vikram Nath and Sandeep Mehta, passed the interim order while hearing the insurer’s petition challenging the NCDRC’s decision. The apex court stayed the operation of the impugned order.
During the hearing, Senior Advocate Neeraj Kishan Kaul, appearing for Rajasthan Royals, argued that the claim had been wrongly repudiated. He submitted that while the insurer rejected the claim, citing a pre-existing toe injury, Sreesanth was actually unfit due to a knee injury sustained during the policy period, which prevented him from playing in the 2012 IPL.
Kaul also noted that the BCCI had separately taken another insurance policy covering the same loss of player fees, and the corresponding claim had already been paid.
At this point, Justice Mehta remarked, “Mr. Kaul, he (Sreesanth) did not play for a single day.”
The Bench, however, chose to stay the NCDRC’s direction and issued notice in the matter.
The dispute arises from a ‘Special Contingency Insurance for Player Loss of Fees Cover’ policy worth Rs 8.70 crore, obtained by Rajasthan Royals for the 2012 IPL season. The policy covered losses from a player’s inability to participate due to accident or injury during the policy period, which commenced on March 28, 2012.
Sreesanth reportedly suffered a knee injury during a practice session in Jaipur on the first day of coverage and was declared unfit for the tournament. The franchise filed a claim of Rs 82.80 lakh on September 17, 2012.
Although the insurance surveyor confirmed the injury was “sudden, unforeseen, and within policy scope,” United India Insurance repudiated the claim, citing nondisclosure of prior injury history.
The NCDRC ruled in favour of Rajasthan Royals, directing payment. The insurer then approached the Supreme Court, which has now stayed the order pending further hearing.
