LHC Orders Interest on Delayed Insurance

Justice Raheel Kamran of the Lahore High Court in Pakistan ruled that widows and heirs of deceased policyholders deserve interest on delayed insurance payments. The court dismissed four appeals from the State Life Insurance Corporation of Pakistan stemming from disputes dating to the late 1990s. These cases involved families of State Life employees whose initial claims were denied, leading to decades of legal battles.

The corporation argued that a law requiring interest payments conflicted with Islamic injunctions and had been overturned. Justice Kamran disagreed, citing subsequent review proceedings that effectively reinstated the earlier ruling. The judge also noted that the relevant section of the Insurance Act was still in effect when the insured individuals died.

The court affirmed earlier decisions requiring State Life to pay interest at five percent above the prevailing bank rate. The judge found the claimants pursued legal remedies in good faith despite ongoing confusion about insurance dispute forums. The full impact of this ruling on similar pending cases remains unclear.