HC rejects contractor Kotia Projects' request to direct insurance firm for compensation in Harni Lake boat accident

Gujarat High Court has dismissed a prayer by contractor firm M/s Kotia Projects Ltd seeking directions to United India Insurance Company to pay or contribute to compensation awarded to the families of victims in the tragic Harni Lake boat capsizing incident in Vadodara.

The court observed that the dispute between the insured (M/s Kotia Projects) and United India Insurance company arises from their contract and must be resolved through appropriate legal remedies available to the contractor.

The insurance company argued that Kotia Projects violated insurance policy conditions by failing to notify the accident promptly. The firm intimated the claim only on March 4, 2025—over 411 days after the incident—by which time compensation had already been adjudicated. This delay denied the insurance company an opportunity to contest or participate in the proceedings.

Additionally, the insurance policy prohibited the insured (M/s Kotia Projects) from making admissions, offers, or payments without the insurance company’s written consent. It The contended that no timely claim was raised, and the policy excludes liability from deliberate or wilful non-compliance with statutory provisions.

The insurance company further highlighted that it was not privy to the tripartite agreement shifting operational and liability responsibilities to M/s Dolphin Entertainment. Thus, any indemnity obligation under the public liability (non-industrial) policy does not extend to such arrangements, and the primary liability may lie with Dolphin Entertainment.

Kotia Projects countered that procedural delays should not defeat substantive indemnity in public liability cases involving mass casualties, denying any violation of policy terms and insisting the insurer cover its share of the awarded compensation.

The tragedy occurred on January 18, 2024, when a motorised boat carrying students and teachers from New Sunrise School capsized during a picnic at Harni Motnath Lake (also known as Harni Lake). The accident claimed the lives of 12 schoolchildren and two teachers, primarily due to overcrowding and lack of safety measures such as life jackets, as per police investigations.

A Special Investigation Team (SIT) of Vadodara police arrested 20 individuals, including partners of M/s Kotia Projects, which held the contract from the Vadodara Municipal Corporation for managing boating and related activities at the lake.

The firm had initially leased operations to M/s TriStar Enterprise in 2019, later transferring responsibilities through a tripartite agreement in June 2023 to M/s Dolphin Entertainment, which assumed duties for safety, maintenance, and liability.