UMA RANI GAUTAM Vs. LIC OF INDIA

JUDGEMENT

(1.) THIS appeal arises out of the order dated 27.5.2004 passed by the learned District Forum, Kota whereby the complaint was dismissed.

(2.) THE husband of the complainant Late Shri Shyam Bihari Gautam had obtained 8 life policies under Salary Savings Scheme (SSS). He died in an accident on 3.11.1997 and thereafter claim was filed by the complainant with the Insurance Corporation. Out of eight policies the claims of four policies were settled. Now the dispute remains with regard to the policy Nos. 181238183, 181237785, 181416733 and 181417738 which are for a sum of Rs. 10,000, 11,000, 25,000 and 5,000. The claim was repudiated on the ground that no premium after June 1996 was received by the Corporation and therefore the policies had come in a lapsed condition. The matter was also taken up by the office of Insurance Ombudsman. There also the plea of the complainant was that the premium was deducted from the salary of the deceased LA upto October 1997 and therefore the claims were payable. On the other hand, the Corporation came up with the plea that premium regarding all the policies was paid only upto June, 1996. No further premium was received from the Factory as it remained closed thereafter under lockout. It appears from the order of the Insurance Ombudsman exhibit C28 that in view of the controversy between the parties, the representative of the LIC was asked to find out the exact date when the factory was declared closed under lockout by ascertaining the facts from the Labour and Welfare Office, Kota. A letter from the Labour Commissioner, Kota was produced wherein it was categorically stated that even though the J.K. Acrylic was not declared a lockout factory in June, 1996, there was no production from this Unit and the staff were not paid any wages beyond October 1996. From this order, it also appears that the State Government had asked the District Collector, Kota to recover an amount of Rs. 8,06,21,371 from the properties and installations of the factory of view of the arrears of pay and the bonus of the employees. It could be possible to disburse the pay of the workers of four months only. The complainant has also brought on record Exhibit -C -15 to Exhibit 25 which are the pay slips seem to have been issued by J.K. Synthetics Ltd., Kota. These slips go show that premiums of the policies were deducted from the salary bill till May, 1997. The letter dated 31.1.2002 Exhibit C -29 issued by the Vice -President (Legal) of J.K. Synthetics Ltd., Kota mentions that the salary of the employees was paid till September, 1996 and thereafter salary slips were prepared and distributed by P&Aemployees without authority when the Acrylic Plant remained closed. It was also mentioned in this letter that insurance premium was deposited by the Company till June, 1996 with LIC, Kota.

(3.) FROM the above factual matrix, it appears that the factory was not closed on account of lockout or on account of any other legal obligations. It appears that there was no production and due to that there was problem in paying the salaries to the employees. In view of the Salary Savings Scheme, we have to see whether the Insurance Corporation was justified in repudiating the claim of the complainant.