The 2012 Indian Premier League (IPL) season has again made the limelight with Rajasthan Royals (RR) and United India Insurance Company locking horns in the Supreme Court in a dispute that originated over a decade ago. The case is related to an insurance claim that was rejected worth ₹82.8 lakh, submitted by the franchise when pacer S Sreesanth was ruled out of the 2012 season of the IPL due to a knee injury.

Rajasthan Royals had purchased a Special Contingency Insurance for Player Loss of Fees Cover for an aggregate amount of ₹8.7 crore prior to the 2012 season. The policy was meant to cover teams if a contracted player failed to attend the tournament because of injuries incurred during the policy duration.

On 28 March 2012, the day the policy was implemented, Sreesanth had a knee injury in a practice match in Jaipur, keeping him out of the season. Rajasthan Royals lodged a claim of ₹82.8 lakh to recover player wages paid to him.

United India Insurance, though, rejected the claim on the basis that Sreesanth had a pre-existing toe injury in 2011 which was not disclosed. The company alleged that this non-disclosure made the claim invalid, with the implication that the toe injury had already impacted his availability.

The Royals rebutted that Sreesanth was playing actively with the toe injury and that the knee injury during the period of insurance was the only cause of his absence in IPL 2012.

Also Read | Watch old video resurfaced: Harbhajan Singh slapping Sreesanth

The issue went to the National Consumer Disputes Redressal Commission (NCDRC), which held in favor of Rajasthan Royals and directed the insurance company to pay the claim. The insurance company has now moved the Supreme Court, which is examining the case closely.

At the hearing, Justice Vikram Nath and Justice Sandeep Mehta questioned if the toe injury was disclosed during the policy. The bench also commented:

"If the insurance firm was aware about the toe injury then it should not have insured Sreesanth in the first place."

Senior Advocate Neeraj Kishan Kaul, arguing on behalf of Rajasthan Royals, emphasized that the knee injury and not the toe problem was the clincher:

"The toe injury did not stop him from playing. He was playing! It was during the practice session that he had a knee injury!"

Kaul also assured that fitness certificates were provided to the insurance company during the time of joining of the player as well as after he was injured.

On the contrary, United India Insurance's lawyer, Additional Solicitor General Aishwarya Bhati, argued that the claim was declined based on non-disclosure of the pre-existing toe injury.

Also Read | 'Shame on You': Sreesanth’s Wife Blasts Lalit Modi, Clarke

The bench of the Supreme Court has reserved the matter and asked the insurance firm to file more documents to clarify. They include:

• The insurance form filed by Rajasthan Royals
• The initial fitness certificate of Sreesanth
• The records pertaining to his knee injury

The court ruled that if the prior injury had been adequately disclosed, the insurance company could have rejected the coverage or quoted a higher premium.

Rajasthan Royals had taken a player loss insurance cover for ₹8.7 crore, which guaranteed compensation for money paid to any player who missed games because of injury in the tournament. An insurance company-appointed surveyor had found earlier that Sreesanth's knee injury was a "sudden unforeseen and unexpected event" and suggested the claim be settled.

Despite of this report, the claim was denied by the insurer, which led to a court battle that has made it to the Supreme Court.

With the Supreme Court now examining the papers, the ultimate decision could have far-reaching implications for the treatment of insurance claims related to injuries in sports.