State Consumer Disputes Redressal Commission
Life Insurance Corporation Of ... vs Smt.Laxmibai Vishwanath ... on 14 June, 2010
1 F.A.No. :1200/08
Date of filing:19.11.2008
Date of order:14.06.2010
MAHARASHTRA STATE CONSUMER DISPUTES REDRESSAL
COMMISSION, MUMBAI, CIRCUIT BENCH AT AURANGABAD.
F.A. NO.: 1200 OF 2008
IN COMPLAINT CASE NO. :115 OF 2008
DISTRICT FORUM:PARBHANI.
Life Insurance Corporation of India,
Through its Divisional Manager,
Adalat Road, Aurangabad. ...APPELLANT
(Org.Opp.No.1)
VERSUS
1. Smt.Laxmibai Vishwanath Mundhe,
R/o Selmoha, Tq.Gangakhed,
Dist.Parbhani.
2. The Chief Executive Officer,
Zilla Parishad, Parbhani. ...RESPONDENTS
(No.1-Org.Complainant,
No.2-Org.Opp.No.2)
Coram : Shri.S.G.Deshmukh, Hon`ble Presiding Judicial
Member.
Mrs.Uma S.Bora, Hon`ble Member.
Present : Adv.Shri.Narwadkar for appellant, Adv.Shri.S.R.Deshpande for respondent.
O R A L O R D E R Per Shri.S.G.Deshmukh, Hon`ble Presiding Judicial Member.
1. The present appeal is filed by LIC of India against the judgment and order dated 16.10.2008 in complaint case No. 115/08 passed by District Forum, Parbhani.
2. Respondent/Org.Complainant`s case before the Forum is that, her deceased husband Shri.Vishwanath Mundhe had obtained Jeevan 2 F.A.No. :1200/08 Sathi(Double Cover Joint Life Plan)With Profit(With Accident Benefit) policy for sum assured of Rs.50,000/- for the period 28.03.2005 to 28.03.2026 under salary savings scheme. Monthly premium was of Rs.230/-. It is contended that husband of complainant died on 28.3.2007. Complainant being legal heir of deceased Vishwanath submitted the claim. The claim was repudiated on 7.5.2007 on the ground that LIC did not receive the premium for 7 months (May, June, July 2005 & April, June, July and October 2006). Thus she approached the Forum.
3. Present appellant appeared before the Forum and resisted the claim. It is contended that at the time of death of policy holder policy was in lapsed condition as premiums for May, June, July 2005 & April, June, July, October 2006 were not received by them.
4. The Forum below after going through the papers and hearing the parties allowed the complaint and directed appellant to pay policy amount by deducting premium of 3 months with the bonus with interest @ 9% p.a. from the date of complaint. Forum also directed appellant to pay Rs.500/- towards cost.
5. Being aggrieved by the said judgment and order passed by the District Forum, Parbhani, L.I.C.of India came in appeal.
6. Notice was issued to the respondent. Learned counsel Shri.S.R.Deshpande appeared on behalf of respondent. We heard learned counsel Shri.Narwadkar holding for Adv.Shri.M.V.Deshpande for appellant and learned counsel Shri.S.R.Deshpande for respondent. We perused the papers. There is no dispute that policy in question was obtained under salary savings scheme. Under salary savings scheme 3 F.A.No. :1200/08 employer is authorized to deduct the monthly premium from the salary of employee and is to remit the same to the appellant. It is the contention of appellant that appellant did not receive the premiums for the month of May, June, July 2005 & April, June, July, October 2006 and thus the policy was in lapsed condition. It appears that neither the appellant nor employer informed deceased for non payment of premiums for concern months. Salary savings scheme has been floated by the LIC. It is not their case they had withdrawn the scheme in question and declared that employer is not their agent. When employer was authorized to deduct the premium from monthly salary it was for employer to deduct premium from monthly salary and to remit the same to the appellant. Employer was agent of appellant for deducting premium from monthly salary of employee and for remitting the same to the LIC. For the default of employer who is acting as agent of LIC. LIC is liable for the acts of his agent. Forum below has considered the ratio in 'Delhi Electric Supply Undertaking -Vs- Basanti Devi' reported in AIR 2000(SC) page 43. It also appears from the papers that complainant had asked for the status report of the policy in question. Status report is dated 9.4.2007 which mentions that policy was in force. It also reveals that premiums sent by employer after deducting those from the monthly salary even after default have been accepted by appellant, appellant never informed the deceased about lapse of policy in his life time. Forum below has rightly considered all these aspects in right perspective. It appears from the papers that appellant did not receive the premium for the month of April, June, July,October 2006, appellant is at liberty to deduct the premiums of 4 months from the claim amount. Accordingly appeal is disposed of. No order as to cost. Rest of the order is maintained as it is.
4 F.A.No. :1200/08Mrs.Uma S.Bora S.G.Deshmukh,
Member Presiding Judicial Member
Mane