LIC OF INDIA Vs. KAMALA VENUGOPAL

JUDGEMENT

(1.) THE opposite party in COP No. 6/2000 on the file of the District Consumer Redressal Forum, Chennai (South) is the appellant herein. The complainant s husband had taken an insurance policy for a sum of Rs. 1.5 lakh commencing from 12.6.1995. He was employed in the Gulf countries. On 4.7.1997, he had sent a cheque for Rs. 13,500 towards the premium for the said policy. He died on 10.7.1997. The opposite party was duly informed. When she approached the opposite party, the complainant was informed that the policy had lapsed on account of non -payment of two annual premia. The opposite party also informed that the cheque dated 4.7.1997 for Rs. 13,500 had been received but was misplaced. Alleging deficiency in service on the part of the opposite party in refusing to pay the benefit under the policy, the complaint came to be filed.

(2.) THE opposite party resisted the complaint contending inter alia as follows : Excepting the premium for the year 1995, the premium for the year 1996 had not been paid. The cheque dated 4.7.1997 for Rs. 13,500 had been received on 16.7.1997 after the death of the insured on 10.7.1997 and by that time, the policy had lapsed. There was nothing to pay. There was no question of refusal to pay the policy amount.

(3.) THE District Forum found that there was no amount payable under the policy. However, when the opposite party had received the cheque for Rs. 13,500 after the death of the policy holder, it ought to have returned the cheque. It was not open to it to say that it would be returned as and when it was traced. Even after five years, the cheque had not been returned and this was deficiency in service on the part of the opposite party. The District Forum directed the opposite party to refund the premium amount paid with interest at 12% p.a. from 16.7.1997 with compensation of Rs. 10,000 and costs of Rs. 1,000. It is as against that the present appeal has been filed.