LIFE INSURANCE CORPORATION OF INDIA vs DODDA SAMBAIAH

THIS Revision Petition has arisen out of the order dated 29.4.94 of the Andhra Pradesh State Commission at Hyderabad dismissing the appeal of the Life Insurance Corporation of India (for short called LIC) petitioner herein, and upholding the order dated 7.3.92 of the District Forum Warrangal directing the LIC to issue a cheque for Rs. 20,000/- with interest at the rate of 12% per annum from 3.7.90 till the date of payment besides costs of Rs. 500/-.

AS we are inclined to remana the case, we will very briefly notice the facts. The Complainant was issued Life Insurance Policy No. 60961792 on his own life. In terms of the policy, survival benefits in the sum of Rs. 20,000/- were to be paid to him on or about 3.7.90. L.I.C. remitted the said sum of Rs. 20,000/- being the survival benefit vide Cheque No. 287624 dated 5.7.90 drawn on the Andhra Bank, Warrangal. The said cheque along with the policy bond was dispatched vide postal Registered Receipt No. 2445 dated 7,7.90, admittedly received by the Head Post Office, Warrangal and handed over by the said Post Office to the Postman on beat for delivering to the Complainant. The Complainant alleged non-receipt of the registered letter containing the cheque. On enquiry from the Postal Authorities, it was revealed that the Postman on beat No. 1 Sri Rajapochiah had taken the registered letter No. 2445 addressed to the Complainant along with other letters for delivery, but lost 10 registered letters including No. 2445 which are alleged to have been stolen from the bag. Subsequently enquiries revealed that a fictitious account was opened and the said cheque issued in favour of the Complainant was encashed on 10.7.90. The District Forum, Warrangal rightly posecf the question as to who had stolen the said registered letter, removed the cheque and encashed it by opening the account, and this required a thorough probe for which they directed the registration of an F.I.R. and investigation as to who had committed the mischief. Nevertheless it proceeded to hold that there was deficiency on the part of the L.I.C. and awarded compensation as also to the Complainant.

UNTIL and unless a thorough investigation was concluded by the Police Authority, there was no warrant to hold that the said cheque of Rs. 20,000/- representing survival benefit, was not received by the Complainant and that there is deficiency in service.

THE order of the District Forum was however confirmed by the State Commission. Hence the Revision Petition by the L.I.C. Prima facie there was no deficiency on the part of the L.I.C. in rendering service in terms of the policy bond as the L.I.C. drew the said cheque for Rs. 20,000/- on due date and dispatched the cheque by registered post to the Complainant. The District Forum as well as the State Commission had to await the report of investigation by Police and could direct payment by L.I.C. if it was established that the theft, fraud, forgery or impersonation was played by a person other than the Complainant or by his connivance. We wish to say no more at this stage. The impugned Orders of the State Commission dated 29.4.94 and of the District Forum dated 7.3.92 are set aside and the case is remanded back to the District Forum, Warrangal to obtain the result of the investigation by the Police Authorities in pursuance of the complaint lodged and thereafter proceed to determine the complaint in accordance with law. There will be no order as to costs.