R CHANDRIKA Vs. LIC OF INDIA

JUDGEMENT

(1.) This complaint is filed seeking a direction to the to pay an amount of Rs.2,00,000/- with interest at the rate of 18% per annum from 28.8.90.

(2.) Briefly stated the facts of the case are as follows:

(3.) The husband of the complainant Dr. Rajendran insured his life with the 1st Opposite Party for Rs.2 lakhs on 28th August, 1986. As per the terms and conditions of the policy, premium amount Rs.3,777.50 had to be paid quarterly and if the premium amount was not paid on the due date, interest on the premium amount also had to be paid from its due date till its payment. The complainant alleged that he paid premium due upto 28.2.90 with interest on it. The next premium was due to be paid on 28.5.90. While so Dr. Rajendran died on 28.8.90 at S. S. N. M. Hospital at Varkala. So on the date of his death one premium on his life insurance policy was due and the due date for payment of the said unpaid premium was on 28.5.90. The complainant contended that according to the terms and conditions if after atleast three full years premium is paid in respect of the policy, any subsequent premium be not duly paid in the event of death of the life assured within 6 months from the due date of the first unpaid premium the policy will be paid as if the policy had remained in full force after deduction of (a) the premium of premia unpaid with interest thereon to the date of death on the same terms as for revival of the policy during such period and, (b) the unpaid premium falling before the next anniversary of the policy. The complainant alleged that she is the nominee of her husband under the policy and as per the law of insurance and as per the terms under which the policy was insured the complainant was entitled to get the full amount assured on the life of the deceased. Though complainant approached the Opposite Parties they did not pay full amount and intimated that they would pay only Rs.49,000/- which is only the paid up value under the above policy. It is in these circumstances the complaint was filed claiming Rs.2,00,000/- together with interest at the rate of 18%.