SIPRA CHATTERJEE Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner, the widow late Shri M.N. Chatterjee, has failed this writ petition aggrieved by the decision of the Life Insurance Corporation of India (LIC) in rejecting her claim under the Life Insurance Policy bearing No.111793283, for the death of her husband. Respondent LIC rejected the claim on the ground that the insurance policy had lapsed on account of failure to pay the premium. It however offered a sum of Rs.10,000/- being the paid up value of the policy, which was not acceptable to the petitioner. The relevant facts leading to the filing of this writ petition are given hereinafter:

(2.) Petitioner's husband late Shri M.N.Chatterjee, a young advocate, met with an accident on 1.3.1997. He was hit by a truck belonging to the Central Industrial Security Forces (CISF). Petitioner was immediately rushed to the All India Institute of Medical Sciences (AIIMS). Petitioner claims as a result of the serious head injuries sustained, her husband Mr.M.N.Chatterjee went into a coma and remained in that state till his death on 18.12.1997. This assertion has not been refuted by the respondents in the counter affidavit in reply and is stated to be a matter of record.

(3.) The ground on which LIC rejected the claim is that the premium which fell due in the month of March 1997, was not paid. Reliance was placed on Clause 2 of the terms and conditions of the policy to urge that on account of default in payment, policy stood lapsed. LIC, therefore, offered to return the paid-up value of the policy. Admittedly there was no payment of the premium amount and this was sought to be treated by the respondents as default resulting in lapse of the policy.