UNION OF INDIA Vs. RAJESWARI

JUDGEMENT

(1.) BOTH the above titled appeals arise out of the order dated 11th May, 1992 passed by the State Consumer Disputes Redressal Commission, Tamil Nadu at Madras in a complaint filed by Smt. Rajeswari, who is Respondent No. l in the above appeals. By the impugned order the Life Insurance Corporation (for short the Corporation) and Union of India were ordered to pay a sum of Rs. 75,000/- jointly and severally to the complainant being the maturity value of the policy of the insurance taken on her husband's life, with interest @ 18% per annum from the date of his death till payment. The Opposite Parties were also directed to pay Rs. 50,000/- as compensation to her for mental agony and suffering. First Appeal No. 242 has been preferred by the Union of India against the said order of the State Commission while the Corporation has preferred the other appeal.

(2.) THE brief facts are that G. Nandagopal, husband of Smt. Rajeswari-Complainant, was employed in the Engineering Workshop of the Southern Railway, Arakkonam. He took his policy of insurance on his life on 14th October, 1989. The maturity value of the policy was Rs. 75000/- and the monthly premium payable was Rs. 300.60. This policy has been taken by the assured under the Salary Saving Scheme of the Corporation. The premium was deductible from his salary by the employer i.e. Union of India through Southern Railway. The Corporation vide letter dated 20th August, 1990 informed the employer of the assured and others in respect of new policies issued to the employees of the Southern Railway and months from which premia were to be deducted. Authorisation letters were also sent along with that letter. In that communication, about G. Nandagopal it was mentioned that deduction was to commence from February, 1990. Vide bill dated 22nd August, 1990 Rs. 903/ - were deducted from the salary of G. Nandagopal on account of premium deductions for the months of February, March and April, 1990 from the salary bill for August, 1990. Further recoveries for the remaining three premia for the months of May, June, July, 1990 were made from the productivity linked bonus for the year 1989-90 payable to Shri Nandagopal vide bill dated 21st September, 1990. However, Shri G. Nandagopal had died on 10th August, 1990. The employer was informed about the death of the G. Nandgopal vide letter dated 29th August, 1990, by his widow.

(3.) BEFORE the State Commission the Corporation and the Employer did not appear in spite of service of notice. After considering the evidence, the State Commission held that there has been gross deficiency and negligence in the rendering of service on the part of the oppositge parties. Accordingly the amounts mentioned above were ordered to be paid the Complainant.