Tuesday, September 23, 2025

Oriental Insurance Co. Ltd and Their Employees

*Employees of Oriental Ins. Co. Ltd Drawing "Huge Salaries and Incentives" are Causing Loss to their Own Company : Amount Must be Recovered from Salaries of Such Employees*

In a clear and correct observation made in *OICL v. Aparna Nath [2024] GCtR 3445 (Tripura)*, the clear role of employees of Oriental Insurance Co. Ltd in causing financial loss to their Company was pointed out where role of employees in claim handling was rightly pointed out. The connection between rising insurance premiums due to wrongful actions of employees of OICL was also explained. 

It was rightly held that for unprofessional actions of employees of this Company, the compensation amount should be recovered from employees. It was commented that the "act of the insurance company officials is held responsible for draining away the public money by not performing their duty diligently". HC also made pertinent comments on "huge salary and other incentives" being drawn by employees of OICL. "Liability is fastened on all the erred officers of the insurance company who are directly or indirectly involved with the present case".

You can utilise this observation in tax cases also and whenever due to wrong action of any Tax Department employee, anyone has to go for litigation and he succeeds, then financial liability must be imposed on concerned Tax Department employees if the person succeeds in litigation. It will ensure that employees will stop taking wrong decisions and then forcing others to spent their money in litigation. 

Also, when Tax Department choses to continue the litigation by filing SLP/Appeal/Writ/Review and fails to succeed, costs and compensation must be fastened on Tax department to be recovered from salaries of Tax Department officials responsible for filing such SLP/Appeal/Writ/Review. It will also ensure that employees will stop taking wrong decisions and then forcing others to spent their money in litigation.  


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