State PCS - Jharkhand (JPSC)

• 17 May 2025

HC Allows Third Party Claims Without Policy Details

Why in News? 

In the Reliance General Insurance Co. Ltd. vs. Hemlata Sinha case (2025), the Jharkhand High Court highlighted that after the death of a family’s breadwinner, dependents often lack policy details, but this alone cannot be grounds for denying a third-party insurance claim. 

• The ruling aligns with the Insurance Regulatory and Development Authority of India (IRDAI)'s consumer protection framework and its aim to achieve ‘Insurance for All’ by 2047. 

Key Points 

Insurance Regulatory and Development Authority of India (IRDAI) 

• IRDAI was established in 1999 under the IRDA Act 1999. 
• It is a regulatory body and created with the aim of protecting the interests of insurance customers. 
• It comes under the jurisdiction of the Ministry of Finance. 
• It regulates and sees to the development of the insurance industry while monitoring insurance-related activities. 
• The powers and functions of the Authority are laid down in the IRDAI Act, 1999 and Insurance Act, 1938. 

Insurance for All by 2047  

• About: IRDAI aims to achieve ‘Insurance for All’ by 2047, ensuring that every citizen has comprehensive life, health, and property insurance coverage, and enterprises are supported with appropriate insurance solutions.  
• 3 Pillars: Insurance customers (Policyholders), Insurance providers (insurers) and Insurance distributors (intermediaries)  

 Third-Party Insurance 

• Third-party insurance is a type of liability coverage where the insured (first party) buys protection from an insurer (second party) against claims made by another individual (third party).  
• It covers the legal liability of the first party for damages or losses caused to the third party, even if the first party is at fault. 
  • It covers compensation to accident victims or their families. 
• It is mandatory for all motor vehicles in India under the Motor Vehicles Act, 2019.