M.THANIKACHALAM, J. - (1.) The opposite parties are the appellants.
(2.) Brief facts necessary for the disposal of the case: The complainant/respondent is the wife of Harihara Subramaniam, who had insured his life, with the first opposite party for a sum of Rs.5 lakhs and the policy is called "Anmol Jeevan" [with profit], based upon the proposal given on 31.10.2003, covering a period of 20 years, agreeing to pay half yearly premium of Rs.1,354/-. The proposal was accepted on 31.03.2004 by the first opposite party by collecting a further sum of Rs.2,704/-, in addition to the amount already paid namely Rs.1,354/-. The first premium receipt was received by the insured on 2.6.2004, and the next premium was payable only in September 2004.
(3.) The complainant?s husband, unfortunately died in a road accident on 11.06.2004 during the currency of the policy, before the next premium is payable. On the basis of the policy, when a claim was lodged it was repudiated, as if, the policy had lapsed, stating that even within the grace period, premium not paid, insured died, which is incorrect. The deficiency so committed, was not even rectified, despite repeated requests and legal notice, thereby the opposite parties have caused mental agony, preceded by deficiency in service, for which, the complainant, is entitled to a compensation of Rs.1 lakh, in addition to the sum assured, being the nominee. Hence, the claim.;