Supreme Court: Insurer to Reimburse Compensation to the Extent of its Liability under Policy in Negligence Committed by Doctor

Supreme Court: Insurer to Reimburse Compensation to the Extent of its Liability under Policy in Negligence Committed by Doctor

The Supreme Court while upholding the findings of National Consumer Disputes Redressal Commission has ruled that, in case negligence is committed by a Doctor, the Insurance Company which covered the Doctor shall reimburse the compensation to the Complainant to the extent of its liability under the Policy, as against the Doctor concerned.

In the present case, the Appellant- Nagarmal Modi Sewa Sadan, assailed judgment dated 6 February, 2013 passed by the National Consumer Disputes Redressal Commission, New Delhi (for short `NCDRC’).

The death of a patient was caused in the Appellant’s hospital while being treated by the Doctors of the Hospital (Respondent No. 2, 3 and 4). The Complainant (Respondent No. 1) filed a complaint before Consumer Court, seeking compensation on the ground that death was caused by negligence.

It was in this light, the NCDRC held that the Appellant Hospital as well as the concerned Doctors were liable for being negligent and causing the patient’s death and directed them to pay compensation to Respondent No. 1.

Aggrieved, by the same the Appellant challenged the NCDRC order before the Supreme Court.

The division judges bench comprising of Justices A.S. Bopanna and Dipankar Datta refused to interfere with the NCDRC judgment which held that Doctors working under the Appellant Hospital were negligent. The Court noted that the conclusion reached by NCDRC was done after perusing evidence and considering the report received from the AIIMS Hospital. Therefore, the conclusion with respect to negligence did not warrant any interference.

The Court noted that the Hospital itself was seeking to take advantage of the policy. The Court further noted, in addition to the Appellant-Hospital, the Doctors in whose name the Policy had been issued were also arrayed as Respondents in the NCDRC.

The Court opined that the NCDRC having adverted to all the contentions had arrived at its conclusion that the said Doctors were negligent and such conclusion had attained finality.

In this regard, the Court observed, “Insurance Company is liable to reimburse to the extent they had agreed under the Policy. Hence to that extent, we modify the order holding the Insurance Company (Respondent No.6) to be liable to the said extent and in all other respects, the Appellant shall reimburse the compensation jointly and severally.”

Accordingly, the Court disposed of the appeal.