'He Didn't Play Single Day': Supreme Court Stays NCDRC Order Directing Insurer To Compensate Rajasthan Royals For Sreesanth's Injury

The Supreme Court today stayed the NCDRC order which directed United India Insurance Company to pay the owner of 'Rajasthan Royals' a sum of over Rs.82 lakhs on account of S. Sreesanth's injury during 2012 IPL cricket tournament.

A bench of Justices Vikram Nath and Sandeep Mehta passed the order in a petition filed by the Insurance Company challenging the order of National Consumer Disputes Redressal Commission (NCDRC).

Senior Advocate Neeraj Kishan Kaul, for the respondent(Rajasthan Royals), had earlier argued that a pre-existing toe injury, on account of which the claim was repudiated by the appellant, did not render Sreesanth incapable to play. Rather, it was the knee injury, suffered during the insurance period, which rendered him unfit. Today, the senior counsel pointed out that BCCI had taken another insurance for the same loss of fee (stated to be covered by the insurance in the present case) and the same was paid.

On hearing him, Justice Mehta said, "Mr Kaul, he (Sreesanth) did not play for a single day". Ultimately, the bench admitted the matter and stayed the operation of the impugned order.

To recap, for the 2012 IPL season, the respondent had obtained a 'Special Contingency Insurance for Player Loss of Fees Cover' (policy) for a total sum of Rs.8,70,75,000/- from the appellant. In terms thereof, the appellant was liable to pay the respondent for any loss of monies paid/payable to the contracted players due to their non-appearance in the tournament. This was subject to the non-appearance having been due to circumstances mentioned in the policy, including accident/injury sustained during the policy period.

The policy was enforced from 28.03.2012. On that day itself, one of the insured players - S Sreesanth - suffered a knee injury in a practice match at Jaipur. After treatment and analysis, he was found unfit to play in the IPL 2012 tournament due to the knee injury. Under the policy, the respondent requested processing of claim for loss of player fees and filed a claim for Rs.82,80,000/- on 17.09.2012. A surveyor was appointed by the appellant, who reported that the injury was on account of a 'sudden unforeseen and unexpected event' and the claim was within the scope of the policy.

However, the respondent's claim was repudiated by the appellant on the ground that an existing injury to the insured player (Sreesanth) was not disclosed by it to the insurer.

Aggrieved, the respondent approached the NCDRC. Vide the impugned order, the Commission held in favor of the respondent and directed the appellant to pay the insured sum. Challenging the Commission's order, the appellant approached the Supreme Court.

Appearance: ASG N Venkataraman for appellant-Insurance Company; Senior Advocate Neeraj Kishan Kaul for respondent-Royal Multisport Pvt Ltd

Case Title: UNITED INDIA INSURANCE CO. LTD. Versus ROYAL MULTISPORT PRIVATE LIMITED, Diary No. 33872-2025