LIFE INSURANCE CORPORATION Vs. GULAB DEVI

JUDGEMENT

(1.) This appeal arises out of the judgment dated 18.12.2004 passed by the District Consumer Forum, Dungarpur, whereby while allowing the complaint the Insurance Company was directed to pay Rs.50,000 to the complainant along with interest @ 9% per annum from 22.4.2003 and Rs.1,000 as cost of litigation.

(2.) The life policy was taken by the husband of the complainant late Shri Nathulal on 28.7.2000 for a sum of Rs.50,000. The mode of payment of premium was half yearly. It is mentioned in the complaint that the insured deposited on 19.1.2002 a sum of Rs.873.20 which constitutes the amount of two instalments. The next instalment was payable in July, 2002. It is also alleged that the insured died on 25.1.2002 and thereafter a claim was filed with the Insurance Company but no amount was paid to the complainant. The complainant has thus filed the complaint in the capacity of nominee of the policy.

(3.) The appellant-company filed its version in which it has been admitted that the premium which fell due in July, 2001 was deposited on 19.1.2002 along with the premium of January, 2002. As the premium for July, 2001 was not deposited even in the grace period, the policy had become in the lapsed condition. The insured died on 18.1.2002 whereas the premium was paid on 19.1.2002. As the premium was deposited after the death of the insured, the lapsed policy could not have been revived and, therefore, in case of a lapsed policy the amount as claimed was not payable to the complainant.