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What is the story about?
In a major win for Bajaj Allianz General Insurance Company, the Bombay High Court has allowed their petition against claims of ₹374 crore made by the Government of Maharashtra. With this order, the Bombay HC has quashed the demand that the Maharashtra Govt had raised against the insurance major.
Bajaj Allianz General Insurance Company is a subsidiary of the listed company Bajaj Finserv.
In its order, the Bombay HC held that the Maharashtra Government's demand of ₹374 is ‘unsustainable’ and stands quashed.
The issue pertains to an MOU executed between Bajaj Allianz General Insurance and the Maharashtra Government for implementing the PM Fasal Bima Yoajna. Bajaj Allianz won the bid for Osmanabad (now known as Dharashiv) District for a period of 3 years, commencing with the Kharif season of 2020.
The period between September and October 2021 had witnessed excessive rainfall in the district. Bajaj Allianz paid ₹374 crore to farmers based on claims under PM Fasal Bima Yoajna.
However, the Maharashtra government claimed this payout was only half of what the insurer was required to pay. The state administration had sought an additional ₹374 crore in payout to farmers.
To enforce its demand, the state administration issued letters to freeze the accounts of the insurance company.
The Bombay HC noted that the government’s own data showed that no actual loss was suffered in the Osmanabad district. The HC noted how the crop yield was above the threshold limit.
With this finding, the Bom HC quashed letters from the Maharashtra State Administration seeking payment of additional dues. The Bombay HC also dismissed the PIL by farmers supporting the Maha Govt orders for additional payout of ₹374 crore.
Bajaj Allianz was represented by senior advocate Sharan Jagtiani, advocate Bomi Patel, Saket Satapathy, and Naval Sharma, Partners of Tuli & Co.
Also Read: JSW Infra signs 30-year pact with Kolkata port for berth reconstruction, mechanisation
Bajaj Allianz General Insurance Company is a subsidiary of the listed company Bajaj Finserv.
In its order, the Bombay HC held that the Maharashtra Government's demand of ₹374 is ‘unsustainable’ and stands quashed.
The issue pertains to an MOU executed between Bajaj Allianz General Insurance and the Maharashtra Government for implementing the PM Fasal Bima Yoajna. Bajaj Allianz won the bid for Osmanabad (now known as Dharashiv) District for a period of 3 years, commencing with the Kharif season of 2020.
The period between September and October 2021 had witnessed excessive rainfall in the district. Bajaj Allianz paid ₹374 crore to farmers based on claims under PM Fasal Bima Yoajna.
However, the Maharashtra government claimed this payout was only half of what the insurer was required to pay. The state administration had sought an additional ₹374 crore in payout to farmers.
To enforce its demand, the state administration issued letters to freeze the accounts of the insurance company.
The Bombay HC noted that the government’s own data showed that no actual loss was suffered in the Osmanabad district. The HC noted how the crop yield was above the threshold limit.
With this finding, the Bom HC quashed letters from the Maharashtra State Administration seeking payment of additional dues. The Bombay HC also dismissed the PIL by farmers supporting the Maha Govt orders for additional payout of ₹374 crore.
Bajaj Allianz was represented by senior advocate Sharan Jagtiani, advocate Bomi Patel, Saket Satapathy, and Naval Sharma, Partners of Tuli & Co.
Also Read: JSW Infra signs 30-year pact with Kolkata port for berth reconstruction, mechanisation
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