12-02-2015 - Heard the parties on limitation and on merits.

1.       On being satisfied with the grounds, the delay of about 122 days in filing this appeal is condoned.

2.       On merits, learned counsel for the appellant submitted that as the renewal premium with late fee was accepted by the respondent/ LIC, the complainant was entitled to the insurance claim.

3.       On the other hand, Mr. Sachin Kumar, learned counsel appearing for LIC submitted that the policy lapsed for non-deposit of premium due in August 2008.  The insured / husband of the complainant met with an accident at 8 a.m in the morning on 22.11.2008 and thereafter the premium was deposited at about 1 P.M on the same day, suppressing the factum of accident.  Moreover, only deposit of renewal premium with late fee is not enough for claiming insurance benefit. He referred to Clause 2 and 3 of the Insurance Policy.

4.       After hearing the parties at length and considering the materials on record, it is not possible to uphold the claim of the complainant. Admittedly the purported renewal premium with late fee was deposited after accident in a lapsed policy. Only by such deposit, it cannot be said that the policy stood automatically renewed. Certain formalities were to be completed before renewal, but the insured expired in the next morning i.e. on 23.11.2006.

5.       In the circumstances, we conclude that there was no deficiency in service on the part of LIC. However keeping in view the peculiar facts and circumstances of this case and that the complainant is young widow, we direct the LIC to return the total amount of premiums received against the policy including the last premium deposited on 22.11. 2008, within six weeks of this order.

          With these observations and directions this appeal stands dismissed.

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

                         Ranchi,

                   Dated:-12-02-2015