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Judgment
THIS revision petition has been filed by the Petitioner/OP against the impugned order dated 06.06.2012 passed by the Karnataka State Consumer Disputes Redressal Commission, Bangalore (in short, ''the State Commission '') in Appeal No.2660 of 2008 - LIC and Ors Vs Neelamma by which, while dismissing appeal, order of District Forum allowing complaint was upheld.
BRIEF facts of the case are that complainant/respondent purchased endowment policy on 27.2.2006. The premium was payable quarterly. Insured paid premium upto November, 2006, but did not pay premium payable in the month of February, 2007. OP issued letter to the insured to pay the premium payable in the month of May, 2007 stating that grace period is upto 27.6.2007 in respect of premium payable in the month of May, 2007. Insured died on 12.5.2007. Complainant submitted claim which was repudiated by OP/petitioner on the ground that policy lapsed on account of non-payment of premium of February, 2007 and prayed for dismissal of complaint. Learned District Forum after hearing both the parties, allowed complaint by order dated 18.10.2008. Learned State Commission vide order dated 24.2.2009 in Appeal No. 2660 of 2008, while allowing appeal, set aside order of District Forum. Complainant filed Writ Petition No. 81794 of 2009 before High Court of Karnataka and Hon ''ble Court by order dated 4.8.2010 allowed writ petition and set aside order of State Commission and directed State Commission to dispose of the appeal afresh in accordance with law. Learned State Commission vide impugned order dismissed appeal and confirmed order of District Forum against which, this revision petition has been filed. Heard learned Counsel for the parties and perused record.
LEARNED Counsel for the petitioner submitted that quarterly premium which was to be paid by 27.2.2006, was not paid and policy lapsed on 27.3.2007 and as insured died on 12.5.2007, petitioner has not committed any deficiency in repudiating the claim, but learned State Commission has committed error in dismissing appeal and earned District Forum committed error in allowing complaint; hence, revision petition be allowed and impugned order be set aside. On the other hand, learned Counsel for the respondent submitted that for quarterly premium due in May, 2007, notice depicted grace period upto 27.6.2007 and insured died on 12.5.2007. Complainant was entitled to claim and order passed by learned State Commission is in accordance with law which does not call for any interference; hence, revision petition be dismissed.
IT is admitted case of the parties that policy was obtained on 27.2.2006 and premium was to be paid quarterly. It is also admitted case that payment due on 27.2.2007 was not paid and insured died on 12.5.2007. On account of non-payment of premium due on 27.2.2007, policy lapsed on 27.3.2007. Learned State Commission has upheld order of District Forum on the basis of intimation letter dated 3.5.2007 giving grace period for payment of due premium upto 27.6.2007. Perusal of letter clearly reveals that this grace period was applicable for premium to be paid by 27.5.2007. In this letter itself date for last due premium has been shown as 27.2.2007. Receipt No.2071912 clearly depicts that petitioner deposited earlier premium also with late fee and in that receipt also next premium due has been shown in February, 2007. Perusal of Receipt No.2583588 also reveals that insured made payment of premium with late fee. Thus, it becomes clear that insured always made payment along with late fee and he was aware that next payment of premium was to be paid in February, 2007, but he did pay and in such circumstances, policy lapsed on 27.3.2007, It is admitted case that insured died on 12.5.2007 meaning thereby after lapse of policy and in such circumstances, OP/petitioner has not committed any deficiency in repudiating the claim and learned State Commission has committed error in dismissing appeal and learned District forum committed error in allowing complaint.
CONSEQUENTLY , the revision petition is allowed and impugned order dated 06.06.2012 passed by the Karnataka State Consumer Disputes Redressal Commission, Bangalore in Appeal No.2660 of 2008 - LIC and Ors Vs Neelamma is set aside and complaint filed by the complainant/respondent is dismissed with no order as to costs.