AMBIKA SAHU Vs. CHAIRMAN LIC

JUDGEMENT

(1.) IT is the complainant, who is petitioner before us. The dispute pertains to insurance claim on the life of the husband of the complainant who died on 10.6.1991. Respondent-Insurance Company was informed on 17.7.1991 of the death and papers of claim were filed on 10.1.1992. Two months' period would have been sufficient for the LIC to settle the claim. Only two questions have been raised, one is the rate of interest and other is the date from which the interest should be paid. While the District Forum awarded interest at the rate of 18 per cent per annum, compensation of Rs. 2,000/- and costs of Rs. 500/-, the State Commission, on appeal filed by the complainant, rather reduced the interest to 14 per cent per annum with effect from 30.6.1998 which was the date of filing of the complaint, LIC has not challenged the interest at the rate of 18 per cent and there was no ground for the State Commission to reduce that interest to 14 per cent. Moreover, we are of the view that the interest should have been paid from 1.4.1992 and not from the date of filing of the complaint. Accordingly the order of the State Commission is modified and this petition stands disposed of. Petitioner shall be entitled for costs which we fix at Rs. 2,000/-.