Haryana

StateCommission

A/573/2016

INDRAWATI - Complainant(s)

Versus

LIFE INSURANCE CORP. - Opp.Party(s)

KARAN SINGH

06 Feb 2017

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

                                                 

First Appeal No  :    573 of 2016

Date of Institution:    24.06.2016

Date of Decision :     06.02.2017

 

Indrawati Devi w/o late Shri Balwant Singh s/o Sh. Gopi Ram, Resident of Village Jakhod Khera, Tehsil Adampur, District Hisar.

                                      Appellant-Complainant

Versus

1.   The Life Insurance Corporation of India, 85-86, Commercial Urban Estate-1, Behind Telephone Exchange Hisar, District Hisar through its Branch Manager.

2.      The Divisional Manager, The Life Insurance Corporation of India, Divisional Office, SCO-3,4,5, Sector-1, HUDA, Rohtak-124001 (Haryana)

                                      Respondents-Opposite Parties

 

CORAM:             Hon’ble Mr. Justice Nawab Singh, President.

                             Shri B.M. Bedi, Judicial Member.

                             Shri Diwan Singh Chauhan, Member   

 

Argued by:          Shri Karan Singh, Advocate for appellant.

                             Shri Rajneesh Malhotra, Advocate for respondents.

 

                                                   O R D E R

 

NAWAB SINGH J.(ORAL)

 

          This complainant’s appeal is directed against the order dated May 16^th, 2016 passed by District Consumer Disputes Redressal Forum, Hisar (for short ‘the District Forum’) whereby it directed to pay Rs.13,300/-, that is, balance of the sum assured with interest at the rate of 9% per annum from the due date till its realisation and Rs.25,000/- for harassment and mental agony to Smt. Indrawati Devi-complaint/appellant.

2.                Balwant Singh (since deceased)-husband of complainant purchased Life Insurance Policy (Annexure A-4) from Life Insurance Corporation of India (LIC)-Opposite Parties/respondents on March 28^th, 2003 under Table and Term 14-16. The date of maturity was March 28^th, 2019. The Sum Assured was Rs.1,00,000/-. The Life Assured died on June 15^th, 2012. The complainant filed claim with the LIC but it did not pay the Sum Assured on the ground that the life assured had concealed the true and material facts with respect to his state of health at the time of purchasing the policy.

3.                The complainant filed complaint under Section 12 of the Consumer Protection Act, 1986.

4.                The LIC contested the complaint by filing written version wherein it reiterated the fact stated in the preceding paragraph of this order and prayed for dismissal of the complaint.

5.                The LIC has paid the Sum Assured, that is, Rs.1.00 lac after passing of the order by the District Forum.

6.                Learned counsel for the complainant-appellant has urged that though the Sum Assured has been paid but the District Forum fell in error in not directing the LIC to pay the Vested Bonus also which as per the policy (Annexure A-4) the LIC was supposed to pay.

7.                A reading of the insurance policy (Annexure A-4) shows that in case of death of the life assured before the date of maturity, the LIC was to pay the sum assured plus vested bonus. Indisputably, the life assured died before the date of maturity of the policy.

8.                In view of the above, the appeal is accepted and the LIC is directed to pay the Vested Bonus accrued on the policy, of course, with interest at the rate of 9% per annum from the date of death, that is, June 15^th, 2012 till its realisation.

 

Announced 06.02.2017

Diwan Singh Chauhan Member

B.M. Bedi Judicial Member

Nawab Singh President

CL