LIC OF INDIA AND ANR Vs. BALBIR KAUR

JUDGEMENT

(1.) LIFE Insurance Corporation of India -petitioner (hereinafter referred to as the petitioner ) has filed the present Revision Petition impugning the Order dated 27.4.2004 passed by the State Commission, Punjab dismissing the appeal of the petitioner thereby confirming the Order of the District Forum, Jalandhar dated 21.6.2002. The District Forum had allowed the complaint filed by the complainant -respondent (hereinafter referred to as the respondent ). The facts leading to the filing of this Revision Petition are stated hereinafter.

(2.) THE respondent is the wife of late Shri Sardar Piara Singh Chandi. The said late Shri Sardar Piara Singh Chandi had taken and/or purchased ten insurance policies on his life from the petitioner. The details of the same are as under: <FRM>JUDGEMENT_1_LAWS(NCD)12_2008.htm</FRM>

(3.) THE date of commencement of first policy 1994 and of second policy 1995. The third policy was taken on 12.11.1999 and then, the fourth policy was taken on 14.11.1999. Thereafter, seven other policies were taken. The last policy was taken on 22.3.2000. The case of the respondent was that the deceased late Shri Sardar Piara Singh Chandi, at the time of his death, was quite hale and hearty. That he has purchased ten insurance policies with accidental benefits. The respondent being the wife was nominated as the nominee under Section 39 of the Insurance Act, 1938 and, accordingly, she was entitled to receive the claim on the death of the insured. That on 19.4.2000, while late Shri Sardar Piara Singh Chandi was crossing the railway line he was accidentally run over by a train due to which he died. His body was sent for post -mortem examination on the same day. As per the post -mortem report the death of late Shri Sardar Piara Singh Chandi was accidental and during inquest proceedings also, it was found that death of late Shri Sardar Piara Singh Chandi was an accidental death. After obtaining death certificate, a claim along with policy bond was submitted to the opposite parties -petitioner. As no action was taken by the petitioners for 1 years, complainant along with her son visited the office of the petitioner but no satisfactory reply was given. On 20.2.2002, complainant again visited the office of the petitioner along with her son. The Branch Manager refused to pay the amount told the complainant that she was not entitled to any claim as insured late Shri Sardar Piara Singh Chandi died within one year of the purchase of the policy. According to her, the petitioner had repudiated the respondent s claim without any justification, which amounted to deficiency in service on the part of the petitioner. Accordingly, it was prayed that the petitioner be directed to pay the sum assured along with bonus amount with accrued interest @ 18% p.a. from the date of death till its realization. She also demanded compensation for mental agony and cost of litigation.