THE INSURANCE ACT, 1938, CASES

Sections-2(13D) and 46

“Insured” means a person natural or legal who has been insured by an insurer against some risks or eventualities. For the purpose of Section-46 of the Act. the insured must be the same person as the holder of policy. And policy-holder as defined under Section-2(13D) of the Act is inclusive one. |Para-39]

Janata Insurance Company Ltd. Vs. M/S Islam Steel Mills Ltd. & Ors. 8BLT(HCD)-311

Section-46

Section-46 of the Act empowers a holder of policy to sue for any relief in respect of the policy in any court of competent jurisdiction in Bangladesh; any if the suit is brought in Bangladesh any question of law arising in connection with an such policy shall be determined according to the law in force in Bangladesh. But such rights is given only to the holder of a policy and an insurer cannot claim such right to go to a civil Court. The intention of the legislature not giving any such right i.e. opening the doors of Civil Court to an insurer for avoiding the payment of the insured amount which he cannot avoid inkier the terms of the policy.

Homeland Life Ins. Co. Ltd. Vs. Jahanara Begum & Ors. 8BLT(HCD)-361

Section-46

In all the cases, the goods secured, and the subject matter of the policy were admittedly owned by the plaintiff. Premiums were paid out of the account of the plaintiff. When the claims were placed and surveys held on the application of the plaintiff, the defendant never challenged and/or objected to such acts of the plaintiff. It is also admitted that the goods damaged were kept stored in the premises of the mills of the plaintiff. In all the policies, the goods were stated to have been owned and occupied in the premises of the mills of the plaintiffs and were pledged to the Bank, defendant No. 2 as security for the debts obtained by the plaintiff and the Bank and a charge on the goods. In all the policies, the defendant No. 2 had been slated as mortgage, the plaintiff as mortgagor and the policy was made subject to a Mortgage clause. The plaintiff as was named in all the policies is quite competent to sue the defendant 1 Insurance Company for insurance claims a policy holder under Section-46 of the Insurance Act.

Janata Insurance Company Ltd. Vs. M/S Islam Steel Mills Ltd. & Ors. 8BLT(HCD)-311

Section-47A

Seclion-47A of the Act deals specifically for settlement of the dispute, if any, with regard to life policy. Section says that if the dispute arising under a policy of life insurance assuring a sum not exceeding five thousand taka may be referred to the Controller of Insurance and the Controller may, after hearing the parties and taking such evidence as he may in his absolute discretion, consider necessary settle the dispute. Under sub-section (2_of Section 47A the decision of the Controller of Insurance is final and shall not be called in question in any court and shall be deemed to be a decree of a court. There is of course no other provisions in the Act providing any forum for settlement of any claim in respect of a life insurance police exceeding Taka Five thousand.

Homeland Life Ins. Co. Ltd. Vs. Jahanara Begum & Ors. 8BLT(HCD)-361

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