State Consumer Disputes Redressal Commission
Rita Devi vs Lic Of India & Anr. on 18 November, 2014
H.P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
SHIMLA.
First Appeal No.305/2014
Date of Presentation: 22.08.2014
Date of Decision: 18.11.2014
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Rita Devi, widow of late Shri Rajinder Singh,
Resident of Village & Post Office Masroond (Chated),
Tehsil & District Chamba, Himachal Pradesh.
........... Appellant.
Versus
(1) Life Insurance Corporation of India,
Divisional Office, Block No.14-15,
SDA Complex, Kasumpti, Shimla,
Through its Divisional Manager.
(2) Senior Branch Manager,
Life Insurance Corporation of India,
Chamba, Himachal Pradesh.
........... Respondents.
..........................................................................................
Coram
Hon'ble Mr. Justice (Retd.) Surjit Singh, President
Hon'ble Mrs. Prem Chauhan, Member
Whether approved for reporting?1
For the Appellant: Ms. Ruma Kaushik, Advocate.
For the Respondents: Mr. Navlesh Varma, Advocate.
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O R D E R:
Justice (Retd.)Surjit Singh, President (Oral) Appellant is aggrieved by the order dated 07.07.2014, of learned District Consumer Disputes Redressal Forum, Chamba, whereby her complaint, under Section 12 of the Consumer Protection Act, 1986, 1 Whether Reporters of the local papers may be allowed to see the order? Rita Devi Versus LIC of India & Anr. (F.A. No.305/2014) ______________________________________________________________ which she filed against the respondents, has been dismissed, with the finding that the policy under which claim is made by the appellant, stood lapsed, when the life assured was still alive and, therefore, in terms of the policy, nothing is payable to the appellant.
2. Appellant is the wife of late Shri Rajinder Singh, who had purchased a money back policy in the sum of `50,000/-. The policy was purchased on 11.02.2009. Premium was payable half-yearly on 11th February & 11th August of each year upto to the year 2028. The policy provided that in the event of the life assured dying, a sum of `50,000/- shall be payable to the appellant. According to the appellant, Shri Rajinder Singh, died on 21.09.2010. Claim was lodged with the respondents, to pay a sum of `50,000/-, in accordance with the terms of the policy, but the claim was repudiated, on the ground that premium, due on 11.08.2010, having not been paid, even within the grace period of 30 days, policy stood lapsed on 11.09.2010, while the life assured died on 21.09.2010. Appellant felt aggrieved by the repudiation of her claim and filed a complaint, under Section 12 of the Consumer Protection Act, 1986.
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Rita Devi Versus LIC of India & Anr. (F.A. No.305/2014) ______________________________________________________________
3. Respondents contested the complaint on the same ground, on which the claim had been repudiated. Learned District Forum has accepted the respondents' plea and dismissed the complaint.
4. We have heard learned counsel for the parties and gone through the record.
5. The policy on which the claim is based is Annexure-A. The policy says that premium was required to be paid half-yearly on 11th of February & 11th of August, every year upto the year 2028. Condition No.2 of the policy provides that a grace period of one month, but not less than 30 days, will be allowed for the payment of premium and that if the death occurs within the grace period, the policy will still be valid. The condition further says that in case the premium is not paid within the grace period, the policy will lapse, on the expiry of the period of grace.
6. Admittedly, the premium due on 11.08.2010, had not been paid. The grace period of one month expired on 11.09.2010. Shri Rajinder Singh, the life assured, was alive, when the grace period expired. The premium having not been paid, even within the grace period of one month, policy lapsed on 11.09.2010, in accordance with condition No.2 of the Page 3 of 4 Rita Devi Versus LIC of India & Anr. (F.A. No.305/2014) ______________________________________________________________ policy. Life assured died 10 days' later, i.e. on 21.09.2010, or say after the policy had lapsed. Therefore, nothing is payable to the appellant, under the policy. Appeal is, therefore, dismissed.
7. A copy of the order be sent to each of the parties, free of cost, as per Rules.
(Justice Surjit Singh) President (Prem Chauhan) Member November 18, 2014.
*dinesh* Page 4 of 4