SHYAMALA Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) Basavaraj Vagadale, husband of Shyamla, Complainant/petitioner No. 1 herein, had a joint Premium Saving Account with ING Vysya Bank, respondent No. 2 herein and by virtue of opening of the said Premium Saving Account, had obtained a life insurance policy. Respondent No. 2, the Bank, had taken a group insurance policy from United India Insurance Company Limited, respondent No. 1 herein. As per policy, holders of Premium Saving Account were insured for a sum of Rs. 3 lacs. Basavaraj had died in a road accident on 20.4.2003. Petitioner No. 1the wifealong with her minor children, i.e. petitioner Nos. 2 and 3 approached the bank respondent No. 2 for closing of the Account and for payment of the insurance sum. Respondent No. 2 closed the Account, but did not arrange the insurance sum. Petitioners after waiting for some time themselves lodged the claim with the Insurance Company, which repudiated the same on the ground that the claim was barred by time as the petitioners had not lodged the claim within 90 days of the death of the account holder. Aggrieved by this, petitioners filed the complaint before the District Forum.

(2.) District Forum partly allowed the complaint and directed the Insurance Company to pay Rs. 1,50,000 to the complainants by taking the view that both the deceased and complainant No. 1 were jointly covered for Rs. 3,00,000 and on death of one of them the complainants were entitled to get 50% of the covered amount. Rs.1000 were awarded towards compensation and costs.

(3.) Complainants not satisfied with the order passed by the District Forum, filed the appeal before the State Commission taking the ground that they were entitled to the full sum of Rs. 3,00,000 from the Insurance Company. The State Commission has dismissed the appeal by observing thus: