Life Insurance Corporation of India vs MRS. MADHURIBEN

THIS appeal arises from order dated 20th October, 1999 rendered by the learned Ahmedabad City Consumer Disputes Redressal Forum in Complaint No. 358/1994. Impugned order reads as under : "The complaint is hereby allowed. The case against opponent No. 2 Gujarat State Co-op. Finance Society Ltd., Ahmedabad is hereby dismissed as there is no contract between the complainants and deceased and the opponent No. 2. The complaint against the opponent No. 1 LIC of India, Ahmedabad is hereby allowed, as stated in the complaint, the opponent No. 1 LIC of India is hereby directed to pay the amount covered under the insurance policy No. GSLT/14469 dated 20.8.1989, Rs. 1,00,000/- (Rupees one lakh) with interest at the rate of 16% per annum from the date of death of Kaushikchandra Motilal Talati of whom the present complainants are heirs, who died on 22.2.1990 and the said interest amount on Rs. 1,00,000/- be paid by the opponent No. 1 from the date of 22.2.1990 till payment. Under the above circumstances, the opponent No. 1 is directed to pay Rs. 8,000/- compensation for mental agony and Rs. 2,000/- for cost of this litigation."

WE have heard the learned Advocates for the parties. WE have gone through the impugned order. Briefly stated the complainants, the heirs and legal representatives of insured Kaushikchandra Motilal Talati since deceased claimed insurance amount under the Group Insurance Scheme of the original opponents, more particularly opponent No. 1 Life Insurance Corporation of India (LIC of India for short). It was not in dispute before the learned Forum that the employee-Kaushikchandra Motilal Talati was included in the Group Insurance taken by the employer opponent No. 2 for the benefit of the employees from opponent No. 1 LIC of India in or around August, 1989. It was also not in dispute that the monthly premium was deducted from the salary of the insured till up to the time when he died in the month of February, 1990. Finally, it was also not in dispute that the policy of insurance was issued by the opponent No. 1 LIC of India including the complainant''s name.

The submission which is sought to be made before this Commission is that the policy was issued and the premium was accepted in so far as the present insured is concerned through an error of the clerk of the opponent No. 1 LIC of India. We cannot countenance such a submission particularly when the opponent No. 1 LIC of India did not place any material on record before the learned Forum to indicate that the policy of insurance was issued to the present employee was subject to condition that he would furnish ECG and Blood reports. The letters written by the opponent No. 1 LIC of India subsequent to the event will not go to support the cause which is presented before this Commission. The contract of insurance was concluded in so far as his employer was concerned. In that view of the matter, bearing in mind the decision rendered by this Commission in the case of the Life Insurance Corporation of India v. Lalitaben, widow of Kishoresingh Nanusingh Rajput and Anr., rendered on 9th September 2003 in Appeal No. 108/2000, we do not propose to show indulgence in respect of the main part of the impugned order.

RELYING upon the aforesaid decision we propose to reduce the rate of interest from 16% to 9% and set aside the order of cost and compensation. We, therefore, pass following order : Impugned order dated 20th October, 1999 rendered by the learned Ahmedabad City Consumer Disputes Redressal Forum in Complaint No. 358/1994 is hereby maintained except with regard to rate of interest which is altered from 16% to 9% and except with regard to cost and compensation in the sum of Rs. 2,000/- and Rs. 8,000/- respectively which order stands set aside. This appeal is accordingly partly allowed with no further order as to cost. The amount of Rs. 1,32,334/- is stated to have been deposited in this Commission shall be verified and paid over back to the opponent LIC of India (appellant herein) with interest, if any, by A/c payee cheque and the opponent LIC of India will pay the amount directed in the above modified order to the complainants within six weeks from today. Appeal partly allowed.