LIC OF INDIA Vs. K VENKATALAKSHMAMMA

JUDGEMENT

(1.) The husband of the complainant/Respondent No. 1 was covered under Group Savings Linked Insurance Policy pursuant to agreement between the employer-Respondent No. 2 and the Petitioner. The premium amount was to be deducted by the employer-Respondent No. 2 from the salary of the employee. Out of premium of Rs. 60 per month, Rs. 21 were to be adjusted towards risk premium and the balance of Rs. 39 was to be treated as saving premium which was to be refunded with interest on retirement. In the event of death before retirement the insurance amount of Rs. 60,000 was payable. The husband of the complainant died on 21.7.2001 due to snakebite. The complainant who was the nominee under the policy filed claim, but the same was rejected by the Petitioner on the ground that the policy was in lapsed condition from 22.12.1999 due to non-payment of premium by Respondent No. 2. Accordingly, the surrender value of Rs. 2,313.50 was actually payable by the complainant.

(2.) The complainant approached District Forum. The District Forum held that the Master Policy was not in force from 20.4.1999 for nonpayment of premium by Respondent No. 2 and as such, the complainant was not entitled to claim the assured amount from the Petitioner. The District Forum was also of the view that the District Forum had no jurisdiction to entertain the claim and the complainant had to seek relief in proper Court. The District Forum also held that the judgment of the Apex Court in the case of Delhi Electric Supply Undertaking v. Basanti Devi, 2000 AIR(SC) 43 was not applicable to the case under consideration.

(3.) The order of the District Forum was challenged by the complainant before the State Commission. The State Commission, however, set aside the order of the District Forum and ordered the Petitioner as also Respondent No. 2 to pay the assured amount to the complainant together with interest @ 9% from the date of the complaint till the date of payment. This order is subject matter of challenge in this revision.