LAJWANTI vs SENIOR DIVISIONAL MANAGER L.I.C.OF INDIA

LAXMAN Dass, now deceased, husband of Smt. Lajwanti, referred to as the complainant, deposited his Life Insurance Policy with the opposite party on maturity in order to receive the maturity value of Rs. 6,034.20 in January, 93. LAXMAN Dass failed to receive the amount and he, therefore, took-up the matter with L.I.C. He was informed that cheque for the amount of maturity value of the policy had been sent by registered post dated 11.1.1993. On 25.2.1993, Mr. LAXMAN Dass informed L.I.C. regarding the non-receipt of the cheque. He died on 20th June, 93. After his death, his widow Smt. Lajwanti took up the matter with L.I.C. She was informed vide letter dated 14.7.1993 that the matter was under investigation and she would be informed of the action taken. However, she failed to hear any thing further and was obliged to approach District Forum for necessary redressal.

THE plea of the opposite party was that a payee account cheque in the name of Laxman Dass had been sent by registered post and the cheque had been encashed on 10.3.1993 and in these circumstances, the L.I.C. stood absolved of its liability. THE District Forum accepted this plea raised by L.I.C. and held that there was no deficiency in service on the part of the opposite party and the complainant was not entitled to any relief. THE complaint was, accordingly, dismissed. Aggrieved by the order, the complainant has preferred this appeal. Reply has been filed by the respondent. None appeared for the respondent when the appeal came up forbearing. We have, therefore, heard Mr. S.K. Punshi, authorised representative of the appellant and have carefully gone through the records.

By order dated 28.5.1998, we called upon the appellant to place on record copy of the Bank statement of account in the name of Laxman Dass and as well as that of Smt. Lajwanti alongwith affidavit of the appellant that the proceeds of the cheque purported to have been sent by L.I.C. had not been credited either to the account of Laxman Dass or herself. The appellant has placed on record her affidavit as well as statement of account No. 6851 in the name of Laxman Dass issued by the Syndicate Bank. A perusal of these documents show that the sum of Rs. 6,034.20 was not credited to the account of Mr. Laxman Dass. The entries contained in the statement of account from 4.12.1992 till 7.4.1993 and thereafter the amount standing to the credit of the deceased was paid to Smt. Lajwanti and the account closed. The dates of entries relating to the year 1992 show that the account is not a freshly opened one, but has the account of Mr. Laxman Dass during his life-time. Smt. Lajwanti has stated in the affidavit that she has had no account of her own and that her deceased husband also had no other account. We are absolutely clear in our view that by mere despatch of the cheque the L.I.C. is not absolved of its liability. In case, the cheque is not received by the payee, it is the duty of the L.I.C. to make the payment and take necessary action against the person who managed to clear its cheque or its proceeds in an unauthorised manner. In the facts of the present case, the cheque was not received by the payee Laxman Dass or his legal heir Smt. Lajwanti and it was incumbent on L.I.C. to make payment of the maturity value of the policy. Failure to do so constitutes deficiency in service and L.I.C. respondent herein, is liable to make the payment to the appellant. We, therefore direct the respondent to pay sum of Rs. 6,034.20 to the appellant alongwith interest @18% p.a. on the said amount w.e.f. date of maturity of the policy till payment. L.I.C. would further pay costs amounting to Rs. 1,000/- to the appellant. This order shall be complied with within four weeks of the receipt of a copy of this order failing which the order is liable to be enforced by appropriate proceedings u/Section 27. The appeal is disposed of in these terms. A copy of the order be conveyed to the parties as well as District Forum-IV. Appeal disposed of.