LIFE INSURANCE CORPORATION OF INDIA REPRESENTED BY ITS BRANCH MANAGER Vs. RUPALI MONDAL WIFE OF GANESH CHANDRA MONDAL

JUDGEMENT

(1.) This revision petition is directed against the order dated 07.02.2011 of the West Bengal State Consumer Disputes Redressal Commission, Kolkata (in short, 'the State Commission') in First Appeal no. 238 of 2010. By this order, the State Commission dismissed the appeal filed by the petitioner against the order dated 31.03.2010 of the Birbhum District Consumer Disputes Redressal Forum, Suri (in short, 'the District Forum') in C.F. Case no. CC/53 of 2009.

(2.) The respondent in this petition was the complainant before the District Forum with the allegation of deficiency in service on the part of the petitioner/opposite party Life Insurance Corporation of India (LIC), inasmuch as the LIC repudiated the insurance claim filed by the complainant who, as the wife of the deceased life assured (DLA), was the latter's nominee. The DLA had obtained a life insurance policy commencing on 22.08.2007 for Rs.2 lakh with double accident benefit. The quarterly premium for the policy was Rs.3, 108/- payable by 22nd of February, May, August and November. The life assured met with an accident and died on 23.12.2008. It is not disputed that the premium payable on 22.11.2008 had not been paid and on that ground, the LIC repudiated the nominee's claim. This led her to file a consumer complaint before the District Forum. LIC contested the complaint only on the ground that the first unpaid premium was due on 22.11.2008 and even after allowing the grace period of 30 days, as per condition no. 2 of the policy regarding payment of premium, the premium should have been paid by the midnight of 22.12.2008. In other words, at the time of the DLA's death on 23.12.2008, the insurance policy had lapsed for non-payment of premium. As the policy had run only for one year and three months it also did not acquire any paid-up value; hence, nothing was payable to the nominee of the DLA.

(3.) On appraisal of the pleadings, evidence and documents, the District Forum allowed the complaint and directed the petitioner to pay the sum of Rs.3,96,892/- to the respondent/complainant within one month, the sum being the difference between the amount of entitlement (Rs.2 lakh + 2 lakh = Rs.4 lakh minus Rs.3,108, being the unpaid premium amount).