DIVISIONAL MANAGER LIC OF INDIA Vs. ANGOORI DEVI

JUDGEMENT

(1.) This appeal has been filed by the LIC against the order of the District Forum dated 18.3.93 by which the claim of the complainant has been allowed and the LIC has been directed to pay the amount of the policy with interest @ 18% p. a. w. e. f.10.8.89 and Rs.500/- as costs of the litigation, within 60 days from the date of the order.

(2.) Briefly, the facts are that Ramesh Chand, deceased, was working as a driver with M/s Technological Consultants OP-4, OP-1 is the Divisional Manger, OP-2 is the Chairman and OP-3 is the Branch Manager of the LIC. It is pleaded that OP-4 took a policy of the deceased on 12.2.88, for an amount of Rs.10,000/- vide policy No. S-l 10658041. The last premium was paid by OP-4 on 12.6.89. The premium for the month of July was due on 20.7.89 but before the payment of that premium the deceased died on 10.8.89. The complainant, it is alleged, is the heir of the deceased and she became entitled to the amount of policy after his death.

(3.) The complaint was contested by the LIC inter-alia on the ground that the premium for the month of July '89 had not been paid to them till the death of the deceased. They averred that the due date for payment of the premium according to the agreement between the parties was 20th of each month and it could be paid within a grace period of 15 days thereafter. Thus the premium for the month of July '89 could be paid by 5.8.89. Therefore, the policy lapsed on 5.8.89 and their liability ceased on that date. OP-4 pleaded that the deceased left the service on 10.5.89 and thus there was no duty enjoined upon the employer to make payment of the premium.