Consumer courts can’t hear insurance policyholder's complaints, LHC holds
LAHORE: The Lahore High Court has ruled that consumer courts lack jurisdiction to entertain complaints filed by policyholders against insurance companies. Justice Jawad Hassan issued the ruling on a petition filed by the United Insurance Company of Pakistan Limited against an order passed by the District Consumer Court in Bhakkar. The consumer court had overruled an objection raised by the…
Lahore's Lahore High Court has declared consumer courts unable to handle complaints from insurance policyholders, stating that specialized tribunals hold exclusive jurisdiction. Justice Jawad Hassan dismissed a petition from the United Insurance Company of Pakistan Limited against a District Consumer Court order. The district court had upheld a complaint's validity, arguing it was valid due to the insurance services provided.
However, Justice Hassan disagreed, emphasizing Section 122(3) of the Insurance Ordinance, 2000, which excludes non-specialized courts from reviewing policyholder claims. He cited constitutional precedence and legal precedent, reaffirming the authority of specialized tribunals over disputes under insurance policies. The court ordered the District Consumer Court to reconsider the maintainability of claims within a month, citing constitutional and legal principles.
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