YASHODA Vs. DIRECTOR KARNATAKA GOVERNMENT INSURANCE DEPARTMENT

JUDGEMENT

(1.) PETITIONER's husband was working as a Beekeeping Organiser in the Industries and Commerce Department, Z. P. Wing, Mandya. Petitioner's husband being an employee of the state Government, was under an obligation to take out a policy of insurance on his life during his tenure of employment and this is governed by the Karnataka Government Servants (Compulsory Life Insurance) Rules, 1958 ('the Rules' for short ). Under rule 6 of these Rules, insurance is compulsory for the Government servants and a premium amount of 61/4 per cent of the average salary of the employee is required to be remitted to the Government for issuing a life assurance policy under these Rules. Under the Rules, there is an option given to an employee to have a life assurance policy over and above this amount also and on payment of higher premium.

(2.) DURING his lifetime, the said employee, the husband of the petitioner had taken out three life assurance policies. Claim was not settled in respect of the policy bearing no. 1347653 dated 1. 1. 1996 pursuant to the death of the employee on 13. 9. 1996, inasmuch as the Karnataka Government insurance Department who had issued the policy repudiated the policy and rejected the request of the petitioner who is the wife and nominee under the policy, for payment of the policy amount.

(3.) IT is this repudiation of the policy on the part of the respondent which is questioned in this writ petition contending that the repudiation is not bona fide, not in consonance with the terms of the policy, that the respondents have unjustly denied payment to petitioner and as such directions are to be issued from this court to the respondents to settle the claim put forth by the petitioner in respect of this policy and interest at 18 per cent with other consequential benefits.