JAICHAND DEWANGAN Vs. LIFE INSURANCE CORPORATION

JUDGEMENT

(1.) This appeal has been preferred under Section 15 of the Consumer Protection Act, 1986 , against the order dated 28.4.2006, passed in Complaint No. 191/2004 by the District Consumer Disputes Redressal Forum, Durg (hereinafter referred to as the District Forum for short) whereby the complaint was dismissed by the District Forum.

(2.) The facts not presently in dispute are that the son of the complainant, late Dameshwar Prasad Dewangan, had obtained Bima Kiran Insurance Policy for a sum of Rs. 1,00,000 (Rs. one lakh), bearing No. 581581981 dated 10.12.1999 from the respondent/opposite party No. 2. Amount of premium of Rs. 965 was payable on half yearly basis. It is also not in dispute that the insured Dameshwar Prasad Dewangan died on 31.7.2003 and further that the claim filed by the appellant/complainant was repudiated by the insurer on 15.11.2003 on the ground that the policy was in a lapsed condition on the date of death of the life assured.

(3.) Brief facts necessary for disposal of this appeal are that as per averments in the complaint, it was the O.P. No. 3 who had, as agent of the O.P. Nos. 1 and 2, got Dameshwar Prasad Dewangan insured under the Bima Kiran Policy. The O.P. No. 3 also used to collect the half-yearly premium from the insured and deliver receipt after depositing the amount. It is further averred in the complaint that the O.P. No. 3 used to collect the amount of premium well in advance of the due date. The said O.P. had collected Rs. 965 on 3.6.2003 to be paid towards premium and had assured that he will handover the receipt after depositing the premium with the LIC. Subsequently, the insured met with a fatal accident on 31.7.2003 and succumbed to his injuries. Thereafter, the complainant had given due intimation to the O.P. No. 2 through the O.P. No. 3 and had also laid claim with his assistance and had duly complied with the necessary formalities. However, the O.P. No. 2 vide letter dated 15.11.2003 repudiated the claim on the ground that at the time of death of the life assured, the policy was lying in a lapsed condition and had also refunded the amount of last premium. It is averred in the complaint that this attitude on part of the O.Ps. amounts to deficiency in service. It is also averred in the complaint that the O.P. No. 3 had, during his visit to the village, assured that he will see that the assured sum is paid and further assured that in case the amount is not paid by the insurer he himself will pay the same. The complainant, besides filing his own affidavit, has filed affidavits of Hemlal Thakur, Ram Chandra, Gomti Bai Dewangan, Khumanlal, and has also filed various documents in support of complaint.