12.01.2010

O R D E R

          Life Insurance Corporation of India (LIC), the petitioner herein, was the opposite party before the District Forum.

          Deceased son of the complainant/respondent had taken a life policy from the petitioner for a sum of Rs.1 lakh.  He died in a road accident on 25.9.2007.  Complainant, who is the mother and nominee, filed a claim before the petitioner, which repudiated the same on the ground that the policy had already lapsed as the deceased did not pay the premium which he had to pay in August 2007.  Aggrieved by this, respondent filed a complaint before the District Forum.

          District Forum, vide its order dated 13.8.2008, dismissed the complaint. 

          Being not satisfied, respondent preferred an appeal before the State Commission, which has been allowed by the impugned order.  State Commission, in its order, has held that the petitioner insurance company was deficient in service in not providing the benefit of the insurance policy.  Taking 30.8.2007 as the last date for payment of the premium, State Commission has held that the deceased could pay the amount within the grace period, i.e., up to 30.9.2007.  But since the deceased died during the grace period, i.e., on 25.9.2007, the nominee of the insured was entitled to get the benefit of the insurance policy.

          Counsel for the petitioner contends that the State Commission has erred in observing in its order that no date has been mentioned in the policy by which the premium was to be paid.  He invited our attention to the policy which provides that due date for payment is 15^th and the premium was to be deposited in the months of February, May, August and November every year, which means 15^th day of February, May, August and November.  In the case of default, premium could be paid within the grace period of 30 days.  The amount could be paid up to 15.9.2007 during the lifetime of the deceased, which he did not do.  Policy, under the circumstances, would be deemed to have lapsed.

          Keeping this in mind, we had requested the petitioner to seek instructions to pay a sum of Rs.15,000/- ex gracia to the respondent, being a destitute woman.  Counsel for the petitioner states that Rs.15,000/- have been paid to the respondent vide cheque No.02099 dated 30.12.2009 drawn on Axis Bank, Bhilai.

          State Commission erred in not noticing that the due date of payment was 15^th day of the quarter of the month in which the premium was to be paid. 

          For the reasons stated above, we allow this Revision Petition and set aside the order passed by the State Commission and restore that of the District Forum.

                    Amount deposited by the petitioner before the District Forum be refunded to the petitioner along with accrued interest, if any.