27-04-2015 – Heard the parties on the prayer for condoning the delay of about 19 days in filing this appeal.

          On being satisfied with the grounds, said delay is condoned.

2.       On merits, Mr. Sachin Kumar, learned counsel appearing for the O.P.- appellant - (LIC for short), submitted as follows. The learned District Forum has wrongly awarded interest @ 18 % p.a. from 7.4.2006. The insured died in accidental death on 10.6.1994.  The nominee was her minor daughter. Though, she became major on the date of death of the insured but no claim was filed by her till she died on 24.4.2002. The claim was filed by the husband of the insured, after about 12 years i.e. on 7.4.2006 and further documents were submitted on 6.8.2008. The matter was very old. The complainant even did not have copy of the policy. It was a case of accidental death. Therefore some time was taken in settlement of claim and a cheque for the settlement amount could be issued only on 19.6.2009 which included the double accident benefit and other benefits as per the policy. He submitted that though the LIC could repudiate the claim on the ground of limitation, but taking a sympathetic view, the claim was settled. No protest was made by the complainant to the settlement amount. But he filed the present complaint case on 8.2.2010, complaining that LIC has not paid interest on the settlement amount. In these circumstances he prayed for setting aside the impugned order.

3.       On the other hand, Mr. Ram Narayan Prasad, Advocate, appearing in person supported the impugned judgement and submitted that after the death of the insured, all the papers were submitted in the office of LIC in the year 1995 but nothing was done. He referred to paragraphs 6 and 7 of memo of appeal and submitted that the LIC has admitted that no claim form was issued and the entire policy docket was available with the LIC.

4.       In reply Mr. Sachin Kumar submitted that there was no such statement in the complaint that the documents were submitted in the year 1995. Further he submitted that if the documents were submitted in the year 1995 and the LIC did not do anything, the complainant could have moved appropriate court of law / Forum after waiting for reasonable time. Thus, he submitted that the said submission that documents were submitted in 1995 are beyond pleadings and is false.

5.       Regarding paragraphs 6 and 7, he submitted that the entire paragraph is to be read in the light the pleadings and evidences of the parties, but Mr. Ram Narayan Prasad has read out the portions of the sentences. He submitted that there is no admission on the part of the LIC either in the pleading or evidence before learned District Forum or in this appeal as alleged.

6.       It appears that the learned District Forum held that the case was not time barred because the LIC gave the settlement amount by the cheque dated 19.6.2009. But there is nothing to show that the insurance claim about the death of the insured which occurred in the year 1994, was lodged prior to 7.04.2006. In the facts and circumstances of this case, the payment of settlement amount could not be treated as acknowledgement of liability by LIC.

          Learned District Forum also observed that the settlement amount did not include interest.  But it appears that nothing has been brought on record to show that as per the policy, interest had to be paid for late settlement if any.

          For awarding interest @ 18 % p.a. the judgement reported in IV (2003) CPJ 40 (NC) Ambika Sahu vs Chairman LIC, was relied. But in our opinion, it is not applicable in the facts and circumstances of this case.

7.       It is not possible to accept the submission made on behalf of the complainant that the insurance claim was made in the year 1995.  Further if the insurance claim was made in 1995, and the LIC did nothing, the nominee or the complainant were expected to move any court/ Forum, within a reasonable time.

8.       Thus, it appears that about the death of the insured which occurred on 10.06.1994, the insurance claim was made after about 12 years on 7.04.2006, and further papers were supplied on 6.08.2008.  The LIC paid settlement amount by Cheque dt. 19.06.2009. There is nothing to show that the admissible benefits under the policy was not paid, or that interest was payable as per the policy, in case of delay in settlement if any.

9.        Now the question is whether there was any delay in settling the claim by LIC ? 

           According to LIC, it was an old case and it was settled without undue delay.

          It appears that after further papers were submitted on 6.8.2008, the settlement cheque was issued on 19.6.2009, i.e. after about 11 months. Two-three months could be said to be a reasonable period. Therefore, we modify the impugned order to the following extent. The LIC will pay lumpsum amount of Rs. 7500/- against interest etc. to the Complainant, within six weeks of this order.

           With this modification this appeal stands disposed off.

            Let the statutory amount be returned to the appellant within six weeks. 

            Issue free copy of this order to all concerned for information and needful.

          Ranchi,

          Dated:- 27-04-2015