SHATRUHAN LAL Vs. UNION OF INDIA AND ORS.

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution, filed as a Public Interest Litigation seeks reliefs of (i) setting aside of the order dated 17th July, 2014 of the respondent No.2 Insurance Regulatory and Development Authority (IRDA) ; (ii) direction to the respondent No.2 IRDA to frame suitable guidelines 'in the matter'; (iii) issuance of a writ declaring Section 113 of the Insurance Act, 1938 as ultra vires the Constitution of India; (iv) issuance of a direction to the respondent No.3 Life Insurance Corporation of India Limited (LIC) to give guaranteed surrender value to all the policy holders irrespective of duration for which premium is paid; (v) issuance of a direction to the LIC to maintain account of money collected by LIC from lapsation of the policies under Section 113(supra) and to make a provision for return of the said monies to the policy holders or for the use thereof for some other reasonable purpose; (vi) issuance of a direction to the LIC to make effective guidelines for proper advertisement in media of the minimum period for which premium is required to be paid to earn guaranteed surrender value; and, (vii) issuance of a direction to the LIC to refund the premium paid by the policy holders and forfeited by LIC for non -payment of premium for a period of three years.

(2.) SECTION 113 of the Insurance Act is as under:

(3.) IT is the case of the petitioner that the respondent No.3 LIC is however not maintaining the account of the amount forfeited under the aforesaid policies, as is evident from the reply to another query under the RTI Act.