Delhi High Court Upholds Denial of Insurance Claim Under Chief Minister Advocates Welfare Scheme for Deceased Advocate
Verification Required for Insurance Benefits; Court Requests Policy Support for Families Facing Financial Hardship
In a significant ruling, the Delhi High Court has upheld the denial of a life insurance claim under the Chief Minister Advocates Welfare Scheme (CMAWS) for the late advocate Kamal Khurana, whose name was not verified and included in the insurance policy during the relevant coverage period. The judgment, delivered by Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, emphasizes the necessity of verifying the Delhi Bar Council enrolment number and the Electoral Photo Identification Card (EPIC) number for eligibility under the CMAWS.
Darshana Rani, the appellant and mother of the deceased, had sought INR 10 lakhs as a life insurance claim following her son's demise on 02.08.2023. However, since the insurance policy for the period from 20.10.2023 to 19.10.2024 commenced after his death, the claim was denied by the Government of NCT of Delhi. The court ruled that insurance coverage is contingent upon policy activation, which in this case occurred posthumously.
The court also highlighted the distinct nature of various insurance schemes and their respective coverage periods. It stressed that mere registration under CMAWS does not confer benefits unless requisite credentials are verified. The court empathized with the appellant's situation but stated that no grounds were made out for quashing the order denying the claim.
On a positive note, the court acknowledged the proactive steps taken by the Bar Council of Delhi (BCD) to provide financial assistance to the appellant, granting INR 10,000 per month for two years starting from 15.12.2023. The court encouraged the appellant to seek further assistance from other schemes or funds available under the Bar Council of India Rules.
In its judgment, the court requested the Bar Council of India and Bar Council of Delhi to consider drafting policies to support families of deceased advocates facing financial hardship, ensuring they do not suffer abject poverty due to the loss of their primary breadwinner.
Bottom Line:
Chief Minister Advocates Welfare Scheme (CMAWS) - Life insurance claim under CMAWS cannot be granted if the deceased advocate’s name was not verified and included in the insurance policy during the relevant coverage period.
Statutory provision(s): Chief Minister Advocates Welfare Scheme, Advocates Welfare Fund Act, 2001, Bar Council of India Rules
Darshana Rani v. Government of NCT of Delhi, (Delhi)(DB) : Law Finder Doc Id # 2782845
