RUKMINI HEMBRAM Vs. MANAGER LIC OF INDIA

JUDGEMENT

(1.) The complainant is the nominee of an L. I. C. policy holder, namely, Kali Charan Hemram, who died on 29.7.1993. The deceased Kali Charan Hemram had three policies vide policy No.76366402 dated 28.12.1984 sum assured Rs.5,000/-, (2) policy No.5803580334018 dated 6.4.1991 sum assured Rs.1,00,000/- commencing from 15.3.1991, and (3) policy No.580336809 dated 5.6.1992 sum assured Rs.1,04,000/- commencing from 28.3.1992.

(2.) After the death of the policy holder, the complainant being the nominee of the policy holder submitted requisite documents along with claim applications for settlement of the claims. The L. I. C. authorities without disputing anything settled the first policy but as regards the other two policies the opposite parties did not settle the claims. The late policy holder was the only earning member of the family. Due to financial difficulties his family members are living with much hardship. The complainant approached several times to the opposite parties but in vain. The complainant wrote a letter to opposite party No.2 on 6.8.1994 about the delay in settling the claims. The complainant received a letter on 8.9.1994 from opposite party No.2 that the opposite parties have repudiated the claim of the complainant on the ground that the policy holder had withheld material information regarding health at the time of insurance. The complainant wrote a letter to opposite party No.3 to consider her case and clarified that out of two policies, one policy has run for one year four months and the other one has run for two years four months. The complainant sent first reminder on 29.12.1994 and next reminder on 17.4.1994 to the opposite party No.3. On 26.4.1995 she received a letter from opposite party No.3 that the case had been referred to the Central Office for taking decision but they remained silent. The complainant again wrote a letter on 12.8.1995 to opposite party No.3 to consider her case. After remaining silent for a considerable period, i. e. , from 26.4.1995, the Cuttack Divisional Office issued a letter to the complainant on 19.12.1995 that her claim has been repudiated by the Zonal Claim Review Committee and the Central Office Claim Review Committee.

(3.) While settling the first claim of the policy No.76366402 in which sum assured was Rs.5,000/- the L. I. C. did not raise any dispute for settling the claim. But in respect of the two other policies as the sums assured were higher amount, they have raised objections.