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Bombay HC rules time limits on filing insurance claims void; orders ₹1.13 lakh payout
The Bombay High Court held that time restrictions on submitting health insurance claims are void under the Indian Contract Act and directed United India Insurance Company to clear claims totaling ₹1.13 lakh for Menon and his wife. The ruling cites prior Supreme Court decisions on section 28 of the Indian Contract Act. The case involved a group health policy linked to the Export-Import Bank of India.
Why It Matters
This decision reinforces that time-bound limitations in insurance policies cannot deny entitlements secured by contract law and aligns with higher court precedents.
Timeline
4 Events
April 24, 2026: Bombay High Court ruling on void time restrictions
April 24, 2026
A bench of Justices Bharati Dangre and Manjusha Deshpande of the Bombay High Court ruled that time restrictions in insurance policies are void under section 28(b) of the Indian Contract Act and ordered United India Insurance Company Ltd to clear the health claims totalling ₹1.13 lakh for Menon and his wife.
May 24, 2022: Submission of four health insurance claims by Menon
May 24, 2022
CP Ravindranath Menon, through his employer Export-Import Bank of India, submitted four health insurance claims for himself and his wife totaling ₹1.13 lakh; United India Insurance Company Ltd declined to process the claims, deeming them time-barred.
2022 Supreme Court decision in The Oriental Insurance Company case on time limits for filing claims
2022
The Supreme Court decision in The Oriental Insurance Company case held that time-line requirements for lodging insurance claims are contrary to section 28(b) of the Indian Contract Act and therefore void.
2004 Supreme Court decision cited by Bombay High Court on section 28 of the Indian Contract Act
2004
The Bombay High Court referenced a 2004 Supreme Court decision related to section 28 of the Indian Contract Act in the current case, indicating the legal precedent that contracts extinguishing rights after a specified period may be scrutinized under contract law.