Naib Kaur Vs. Branch Manager L.I.C CC/214/2016
15.9.2016:Present: Sh.P.S.Jawanda,adv. counsel for the complainant/respondent
Sh.Amit Kumar Bedi,adv. counsel for the opposite
party/applicant.
ORDER
This order shall dispose of the application dated 20.7.2016, filed by the learned counsel for the opposite party for dismissal of the complaint. In this application, it is stated that there was no privity of contract between the parties on the date of death of the life assured i.e. 25.10.2015, as the policy was lying in lapsed condition, due to non payment of regular quarterly premium w.e.f.4.9.2015. The grace period of one month had also expired on 4.10.2015. As such the opposite party has no liability to pay any claim to the complainant. It is prayed that the application may kindly be accepted and the complaint of the complainant be dismissed with costs.
2. In the reply filed to the application, by the learned counsel for the complainant, it is stated that the life assured (deceased) had deposited the second installment on 17.7.2015 in the office of the OP. The OP issued the receipt , which clearly shows that the next due date of the installment is 9/2015 and after that there is a grace period of one month which is upto 10/2015 and the deceased has died on 25.10.2015 i.e. within the grace period and the opposite party is liable to pay the claim under the policy. It is prayed that the application may kindly be dismissed.
3. We have heard the learned counsel for the parties and have also gone through the record of the case, carefully.
4. From the perusal of the copy of policy document annexed alongwith the complaint as Annexure-1, it is evident that the life assured, ( now deceased) on 4.3.2015, had obtained a LIC’s Jeevan Rakshak insurance policy with profits for basic sum assured of Rs.75000/- and the life assured was to pay the premium amount of Rs.783/- on 4th day of the month, quarterly, till 4.12.2034. The life assured had paid first premium on 4.3.2015 and second premium on 17.7.2015. The 3rd premium was to pay on 4.9.2015 but he did not pay the same even within the grace period of 30 days which had to fall on 4.10.2015 as per term No.2 of the terms and conditions of the policy, Annexure-1, which reads as under:
“2.Payment of Premiums: A grace period of one month but not less than 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. If the premium is not paid before the expiry of the days of grace, the Policy Lapses
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Since the life assured, now deceased had not paid the due premium within the stipulated period therefore, as per term No.2 , of the policy terms and conditions, the policy stood lapsed. Therefore, the complainant being the nominee, is not entitled for any benefits under the policy in question. In this view of the matter, we allow the application, filed by the OP and dismiss the complaint being without any merit, at this stage only.The copies of the order be sent to the parties free of cost under the rules. File be indexed and consigned to the Record Room.
Member President/15.9.2016
