Impleading insurer in certain cases
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Summary
Where the Claims Tribunal finds collusion between the claimant and the person sued, or that the person sued has failed to contest the claim, it may, for reasons recorded in writing, join the insurer as a party. The insurer so impleaded can then contest the claim on any grounds available to the person sued, subject to sub-section (2) of section 149.
Example
Priya files a motor-accident claim against Rohan. Rohan does not appear or file any defence, and the Tribunal records written reasons to implead the insurer. The insurer is added as a party and can contest the claim using the same defences Rohan could have raised.
Bare Act
Enacted textWhere in the course of any inquiry, the Claims Tribunal is satisfied that—
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(a) there is collusion between the person making the claim and the person against whom the claim is made, or
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(b) the person against whom the claim is made has failed to contest the claim, it may, for reasons to be recorded in writing, direct that the insurer who may be liable in respect of such claim, shall be impleaded as a party to the proceeding and the insurer so impleaded shall thereupon have, without prejudice to the provisions contained in sub-section (2) of section 149, the right to contest the claim on all or any of the grounds that are available to the person against whom the claim has been made.
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