ANU MOHANOT Vs. BRANCH MANAGER LIC OF INDIA

JUDGEMENT

(1.) SHRI S.R. Mehta filed this complaint before the State Commission on 3.4.91 against opposite parties Nos. 1, 2 & 3. A version of the case was filed on behalf of opposite parties Nos. 1, 2 & 3 raising objections regarding the locus standi of the complainant, Shri S.R. Mehta to file the complaint and the defect of non -joinder of L.I.C. of India. The application was submitted by the learned Counsel for the complainant on 9.3.92. Miss Anu Mahanot minor and Sidharth Mahanot, minor were impleaded as complainants through their Court guardian, Shri S.R. Mehta. L.I.C. of India was also impleaded as opposite party No. 4. The order impleading the complain ants and opposite party No. 4 was passed on 20.4.92. The amended cause title of the complainant was submitted on 9.3.92. Shri S.R. Mehta was appointed as guardian of the two minors, Anu Mahanot and Sidharth Mahanot by the District Judge, Bhilwara by order dated 27.11.87. They are minors. The father of the aforesaid two minor children Shri B.S. Mahanot submitted two proposals for two Life Insurance Policies for Rs. 50,000/ - each under Jeevan Mitra (Double Cover endowment plan) with accident benefits with Divisional Bench, Bhilwara (Rajasthan) (Opposite Party No. 1). That as a consideration for the said insurance policies, two cheques amounting to Rs. 3057.50 and Rs. 3910/ - being the first premium of each of the said two policies under plan No. 88 -20 and No. 88 -15 respectively were sent by Shri B.S. Mahanot, father of the minors and that both these cheques were duly accepted and encashed/credited in the account of the L.I.C. opposite party No. 4 (L.I.C.) issued policies Nos. 79364234 and 79364235 in the name of Shri Balde v Singh Mahanot (B.S. Mahanot). The sum assured of each of the policies was Rs. 50,000/ -. The premium was to be paid in the month of April each year. Shri B.S. Mahanot expired on 10.9.1986. Information was sent to the L.I.C. regarding the death of the policy holder, Shri B.S. Mahanot. The minor claimants. are the daughter and the son of the deceased Shri B.S. Mahanot and Mrs. Manju Mahanot. Grand father of the minor complainant -claimants expired on 14.2.85. Smt. Manju Mahanot, mother of the complainants claimants expired on 18.12.85. Grand mother (Mother of Shri B.S. Mahanot) expired on 27.3.86 and Mr. B.S. Mahanot expired on 10.9.1986. Grand father/Grand mother and mother of the claimants died within one year. The father of the claimants who have taken the policies died within 6 months of the death of his mother. It would be clear from the narration of the dates given above that the period from February, 1985 to March, 1986 was not unfortunate and said period for the family and in particular for the deceased father (Policy Holder) of the claimants for, Shri B.S. Mahanot not only lost his father and mother but also his wife during this period. The L.I.C. did not issue any notice before the death of the policy holder stating that any further premium was due and payable by him. Notice was of course issued after the death of the policy holder regarding premium payment. The cheques that were submitted were encashed by the LIC but B.S. Mahanot was not informed that he was required to pay any further amount. After the death of the policy holder Smt. Vimla Jalori who was the nominee lodged a claim on behalf of the minors. The LIC informed the nominee that the policies have lapsed as premium payable in April, 1986 has not been paid. At that time for the first time it transpired that the two policies were back dated and the deceased policy holder was required to pay two instalments at the time of the proposal. The L.I.C. issued the policies after excluding one years premium in May, 1986. Even at the time of issuing the two policies the deceased was not informed that he is required to pay another instalment because of back date policies. Even after the issuance of the two policies referred to above, no demand or reminder was received. The LIC issued premium notices for April, 1987 and April, 1988 despite the fact that due intimation had already been sent to the LIC that the policy holder Shri B.S. Mahanot had unfortunately died on September 10, 1986. The complainant has also alleged that the two policies under the Jeevan Mitra Scheme were issued. But the Jeevan Mitra Scheme itself was introduced in July, 1985. The complainant has set up the case that the L.I.C. could not give benefit of age so as to make the policies effective from April, 1985 when Jeevan Mitra Scheme was not in vogue. According to that clause giving the benefit of age from April, 1985 was under a mistake of fact on the part of the L.I.C. and the deceased policy holder and thus of no effect. Shri S.R. Mehta requested the opposite parties to release the amount of the aforesaid two policies to the minors but they refused to do so. A legal notice was served on opposite parties Nos. 1 & 3. and Personnel Manager, Northern Zone, New Delhi. As the claim of the minors -claimants was not settled the complaint was filed for the award of the amount of Rs. 4,46,670/ - as detailed below: -

(2.) THE complaint for the recovery of Rs. 4,46,670/ - as stated above was filed on 3.4.91.

(3.) IN support of the version of the case Shri Mahendra Kumar Chathli, Senior Regional Manager, LIC of India submitted his affidavit. With the version of the case the following documents amongst others were submitted by the opposite parties Nos. 1, 2 & 3.