C RAJESWARI Vs. L I C OF INDIA

JUDGEMENT

(1.) This is the case of lapsed Life Insurance Corporation Policy under Salary Savings Scheme. Under this Scheme, the employer had to deduct an amount every month from the salary of the employee and forward it to the Life Insurance Corporation as premium. There is no dispute that Andhra Pradesh Public Service Commission had to deduct a premium of Rs. 122/- per month from the salary of late Shri C. Nagaraju and pay it to the Life Insurance Corporation every month. Unfortunately, the Policy No. 640297363 lapsed due to the failure on the part of the Andhra Pradesh Public Service Commission to deduct and pay the premium of the deceased employee on time. Shri C. Nagaraju died on 1.5.1992. His widow should have got a sum of Rs. 20,000/- under the Salary Saving Insurance Scheme from the L.I.C. upon the death of Shri Nagaraju. However, L.I.C. refused to pay on the ground that the policy had lapsed due to non-payment of the premia on time.

(2.) The question before us is whether Mrs. Nagaraju is entitled to get the amount of Rs. 20,000/-, if so, from whom ?

(3.) It has been stated in the Affidavit filed on behalf of the Andhra Pradesh Public Service Commission by the Assistant Registrar-cum-P.S. to President of the A.P. State Commission that