LIC OF INDIA Vs. CHOUDHMAL

JUDGEMENT

(1.) THIS appeal has been filed by the appellant LIC which was O. P. No. 1 before the District Forum, Chittorgarh against the order dated 31. 7. 2007 passed in Complaint Case No. 287/2006, by which a sum of Rs. 25,000 were ordered to be paid by the appellant to respondent No. 1 as amount of ex gratia payment.

(2.) IT arises in the following circumstances: that the complainant-respondent No. 1 had filed a complaint against the appellant LIC as well as against respondent No. 2 Kamal Kumar, the agent of the LIC before the District Forum, Chittorgarh on 2. 9. 2006 inter alia stating that his wife Smt. Rekha Sharma, now deceased had taken a life insurance policy bearing No. 183161675 on 25. 3. 2002 for a sum of Rs. 50,000 form the appellant LIC. It was further stated in the complaint that the deceased had died on 15. 8. 2004 and prior to that all the premiums were being paid by the deceased through the agent of the LIC, respondent No. 2. It was further stated in the complaint that the premium for the month of June 2004 was paid by the deceased to respondent No. 2 on 8. 7. 2004 but no receipt was given by respondent No. 2 and after the death of the deceased, a claim was preferred by the complainant respondent No. 1 being the nominee and husband of the deceaed, but that claim was repudiated by the LIC, the appellant through letter dated 2. 9. 2004 on the ground that since the premium for the month of June 2004 was not deposited by the deceased in her life time since the deceased died on 15. 8. 2004, therefore, on the date of death, the policy was in a lapsed condition, hence claim was not payable. Thereafter the present complaint was filed.

(3.) A reply was filed by the appellant on 17. 10. 2006 and in the reply the appellant had taken the same step which they have taken in the repudiation letter dated 2. 9. 2004 and it was prayed that since the policy on the date of death was a lapsed one, therefore, the complaint be dismissed.