(1.) THE opposite parties are the appellants.
(2.) ONE Ragupathy, the husband of the 1st complainant, father of complainants 2 to 5, had taken an insurance policy for Rs. 27,000, on 28.1.2002, and its number is 752694265. He had paid the monthly premium, upto October, and he was unable to pay the premium, for the month of November. Before the grace period of 15 days, he died on 14.12.2003, due to heart attack. Based upon the policy, when amount was claimed, it was repudiated, on the ground that the policy had lapsed, due to non -payment of premium, which is incorrect, thereby the opposite parties have committed deficiency in service, causing mental agony. Thus claiming policy amount, as well as compensation of Rs. 50,000, the doors of the District Forum, Nagapattinam were knocked by the complainant.
(3.) THE opposite parties admitting the policy, as well as premium paid upto October, opposed the claim contending, that for the month of November 2003, within 15 days, which falls on 12.12.2003, premium was not paid, i.e., within the grace period, and unfortunately, since the assured died on 14.12.2003, after the expiry of grace period, the policy lapsed, and therefore the repudiation is justifiable, cannot be treated as deficiency. Thus, a prayer was made, for the dismissal of the complaint.
The District Forum, calculating the period, to pay the premium, as well as the grace period, has come to the conclusion, that within the grace period, the complainant died and therefore the stand taken by the opposite party, as if the policy was lapsed, is incorrect. In this view, a direction was issued, not only to pay the sum assured, with interest, but also a sum of Rs. 25,000 as compensation, which is under challenge.;