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Gujarat High Court dismisses PIL related to commission rate of insurance company

The Gujarat High Court dismissed a Public Interest Litigation (PIL) filed raising the issue with regard to the decision taken by the insurance company (respondent no.2) to reduce the rate of commission to 5% on the premise that the commission as low as 5% has been fixed for those agents whose Incurred Claim Ratio (ICR) is more than 90% for three consecutive years.

Notification dated 28.02.2020 which provides for reduction in the rate of commission is sought to be challenged by means of this Public Interest Litigation.

The Division Bench of Chief Justice Sunita Agarwal and Justice N.V. Anjaria found it a wholly misconceived Public Interest Litigation filed by a registered association of insurance agents of the insurance company.

On perusal of the record the Bench noted that Special Civil Application of 2020 had been moved by the petitioner herein to challenge the Notification dated 28.02.2020.

Further, Special Civil Application of 2012 has been dismissed and a Letters Patent Appeal of 2021 challenging the order of the Single Judge dated 24.06.2019 has also been dismissed on 23.09.2021.

One of the members of the petitioner Association approached the Apex Court by filing Special Leave to Appeal of 2021, which has also been dismissed on 29.10.2021. In the said scenario, challenge to the Notification/Circular dated 28.02.2022 in the shape of Public Interest Litigation is found to be misconceived.

“It is settled that Public Interest Litigation cannot be maintained to raise personal grievances”, the Court said.

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