DIST.CONSUMER DISPUTES REDRESSAL COMMISSION, KHURDA, BHUBANESWAR:

                                                -ooOoo-

C.D.CASE NO. 199/ 2010

Smt. Babita Barik, aged about 27 years,

W/o – Late Brundaban Barik, At – Raigarpur, PO- Saharajpur,

Via – Beraboi, Dist – Puri

….     Complainant             

-Vrs.-

1. Zonal Manager, L.I.C. of India, East Central Zonal Office,
6.  

Patna – 800001

2. Divisional Manager, L.I.C. of India

Bhubaneswar Divisional Office, P-2, Jayadev Vihar,

Chandrasekharpur, Bhubaneswar – 751023,

….     Opp. Parties 

For the complainant      :         Mr.R.Das & Associates (Adv.)

For the O.Ps                            :         Mr.N.C.Pattnaik  & Associates  (Adv.)

DATE OF FILING         :         12/05/2010

DATE OF ORDER        :         10/04/2023

ORDER

K.C.RATH, PRESIDENT

1.       This is an application U/s 12 of the C.P.Act, 1986.

2.       The complainant’s case in brief is that,  her husband (deceased)  had insured his life for Rs.80,000/- vide policy number 582885741. The  policy commenced  on 5/11/2005 and the date of maturity of the policy was 5/11/2025. The husband of the complainant died on 16/04/2008 due to bedsore and septicemia.  After the death of the complainant’s husband, the complainant, being the nominee,  claimed for the insured amount but the claim of the complainant was not settled.  Hence this complaint.

3.       On the other hand,  the  OPs   filed written version stating therein that, the complaint is not maintainable  in the eye of law. When the complainant lodged claim before the OPs, the OPs  enquired into the matter and found that on the date of revival of the policy i.e. on 10/03/2008, the  husband of the complainant was admitted in the hospital for cervical spine injury.  But for the purpose of revival of the policy, the complainant’s husband had suppressed about his hospitalization at the time of revival, which amounts to suppression and concealment of material facts, for which,  the OPs are not liable to pay the insurance amount. There is no cause of action for the complainant to file this complaint.  The complaint,  being devoid of  merit,  is liable to be dismissed .

4        Perused the materials on record. The  fact that the complainant’s husband  had insured his life with the OPs, is not disputed. The original policy bond as submitted by the OPs indicates that the insurance policy was valid from 5/11/2005 to 5/11/2025. The husband of the complainant  died  on 16/04/2008, which means the death of the complainant’s husband occurred during the policy period. It further reveals  from the materials on record that, due to non-payment of premium, the policy had lapsed. But on 10/03/2008 the policy was revived on  payment of due premium by the complainant’s husband. Annexure -2 submitted by the OPs indicates that, on 10/03/2008,  agent of Life Corporation of India  (LIC)  namely,   Subash Chandra Mansingh had taken  the personal statement of the insured  and revived the policy.  The OPs also accepted the premium paid by the complainant’s husband for revival of the policy. True it is in Annexure -2 submitted by the OP.2, the complainant’s husband answered in negative to certain questions put in the prescribed format.  But the agent of the LIC knows  well the condition of the insured . Under such condition, the agent of the Insurance Company should not have accepted the premium paid by the insurer for revival of the policy. As it appears, the agent of the LIC was at fault for which neither the insured nor the beneficiary under him should suffer. Considering the factual aspects of the case, we feel it proper that, the OPs are at fault in refuting  the claim of the complainant.  It is due to fault of the agent  of the LIC, the policy was revived on payment of  the premium. Therefore, to our mind, the complaint   bears merit.  Hence it is ordered.

ORDER

The complaint is  allowed  on contest against the OPs.  The OPs are    jointly & severally liable to pay the insured amount i.e. Rs.80,000/-   (Rupees eighty  thousand ) only  to the complainant along with the bonus accrued thereon till the date of the death of the insured ( complainant’s husband).  Besides, the OPs  are  further liable to pay  compensation of Rs.20,000/-   (Rupees twenty  thousand) only  towards mental agony suffered by the complainant and a  sum of Rs.2000/-  (Rupees two thousand) only towards litigation expenses.  The order be complied with by the OPs  jointly & severally  within a period of  thirty days from the date of communication of this order,   failing which the complainant will be  at liberty to execute the order  against the OPs   in accordance with law. It is further directed that, after making such payment to the complainant, the OPs i.e. LIC of India ,  may recover the said amount from the agent who was responsible for the revival of the policy on 10/03/2008.

The order is pronounced on this day the  10^th April,  2023  under the seal & signature of the President and Member (W) of the Commission.

                                                                                      (K.C.RATH)    

                                                                                       PRESIDENT

 Dictated & corrected by me

          President                                                                                    

I agree                                                                            

(S.Tripathy)                                                                           

Member (W)                                                                                                                                                 

Transcribed by Smt. M.Kanungo, Sr.Steno