Can insurer issue circular to circumvent judiciary and avoid paying claims?

Though the claimant didn't have a valid route permit, the National Commission still asked the insurer to settle the claim

An insurance policy is a contract. Its terms are binding on the parties. Once the conditions are interpreted in a particular manner, can the insurer issue an administrative circular to circumvent judicial decisions and avoid paying similar claims? This interesting issue recently came up before the National Commission.

Pankaj Kapoor owned a vehicle which was insured with National Insurance under a policy valid from April 4, 2014, to April 3, 2015. The vehicle was taken on April 19, 2015, for filling the air in its tyres, when a retaining wall accidentally fell on to it. Due to the impact, the