- (1.) THIS appeal under Section 15 of the Consumer Protection Act, 1986 is filed against the order dated 20.7.2007 in Complaint Case No. 04/2007 by District Consumer Disputes Redressal Forum, Rahnandgaon (hereinafter referred as "District Forum" in short) whereby the complaint was allowed and O.P. Life Insurance Corporation of India was directed to pay Rs. 50,000 as per insurance policy along with interest @ 9% p.a. from the date of complaint 18.1.2007 with cost Rs. 600.
(2.) THE brief fact of the complaint was that the complainant's husband Sunil Kumar Jain was issued an insurance policy No. 383818272 on 28.3.2005 by O.P./LIC of India for sum assured Rs. 50,000 on quarterly mode basis of premium instalment payment. The policy lapsed after issue of policy due to non -payment of premium due on 28.6.2005. The life assured Sunil Kumar Jam husband of complainant died on 8.8.2005. The complainant being nominee under the insurance policy filed insurance claim with O.P. Insurance company L.I.C. of India which disallowed the claims hence the complainant filed complaint with District Consumer Forum, Rajnandgaon. District Forum, Rajnandgaon allowed the complaint and ordered the O.P. Insurance Company L.I.C. of India to pay Rs. 50,000 with interest @ 9% p.a. and cost Rs. 600 and having been aggrieved by the said impugned order, O.P. L.I.C. of India preferred appeal before this Commission.
(3.) IT is not in dispute that Sunil Kumar Jain, husband of the complainant/respondent in this appeal, was issued an insurance policy No. 383818272 for Rs. 40,000 where under premium instalments were payable on quarterly basis. Second quarterly premium due on 28.6.2005 was not paid and the insured person died on 8.8.2005. The complainant/respondent filed claim with insurance company LIC of India which disallowed the claim on the ground that the policy was in lapsed condition and as per policy condition, nothing was payable towards claim. The complainant being nominee under the policy filed complaint in District Forum, Rajnandgaon which allowed complaint and awarded insurance amount with interest and cost payable by the appellant insurance company. The learned Counsel for complainant/ respondent in his written argument dated 8.6.2007 averred that the policy bond of insurance policy was received by the complainant/respondent of this appeal on 18.8.2005 so she came to know about policy on 18.8.2005 only. She submitted policy bond (document A -4), envelope (document A -8) received through Post Office. These documents were not disputed by the appellant. In para 4 of written argument, it is contended by learned Counsel of complainant/respondent that policy bond was issued on 16.5.2005 so the next premium due should be 16.8.2005 and before that the life assured died so the insurance company was liable for claim. A decision in case of Smt. Shakuntala Devi v. Life Insurance Corporation of India and Anr., 2005 3 CPJ 81dated 4.7.2005 of National Consumer Commission, has also been cited to support the plea. The respondent/complainant also resisted the plea of appellant insurance company LIC that first premium was paid on 28.3.2005 and due to non -payment of second instalment June, 2005 claim was not payable. It is also averred that a contract is not complete until the offer of proposer when accepted by the insurance company is not communicated to the proposer/life insured. It is averred by the respondent/complainant that the policy would be effective from 16.5.2005 so the next premium instalment was due on 16.8.2005 as such insurance company is liable to pay insurance amout with Bonus and interest.;