LATA MAHARANA Vs. INDIAN RARE EARTHS LIMITED

JUDGEMENT

(1.) BEING felt aggrieved by the order of the District Forum rejecting her complaint, the complainant has filed this appeal.

(2.) THE appellant filed the complaint alleging deficiency in service on the part of the respondents in the matter of non -payment of full insurance amount. The facts of the complaint are in a narrow compass. The appellant s case is that his son Jayadev Moharana was working as an Assistant Foreman under the Indian Rare Earths Limited, Matikhalo (hereinafter referred to as respondent No. 1). While in service, he had taken three policies namely, (i) MP No. GI (EDLI) 30458 for Rs. 37,000, (ii) LIC policy No. 580059320 for Rs. 25,000 and policy No. GSLI 30110 for Rs. 70,000. He died on 6.5.1994 while in service. The premium amounts covered under the policies were deducted from his monthly salary by the respondent No. 1 who used to remit the same to the respondent No. 2. After his death the appellant being the mother and legal representative of the deceased Jayadev Moharana claimed the amounts from the respondents. Instead of paying the full amount under the policies the respondent No. 2 paid a portion of them without any legal justification.

(3.) THE respondent No. 1 in his version took the stand that the policy No. MP (EDLI) 30458 was for Rs. 26,000 only. The enhanced coverage upto Rs. 37,000 was applicable in case where the average P.F. balance during the period of 12 months preceding the date of death of the employee exceeds Rs. 25,000. As the P.F. balance of the deceased during the preceding 12 months of the death did not exceed Rs. 25,000 the appellant is not eligible for the benefit of Rs. 37,000. Regarding the other two policies the stand of the respondent No. 1 is that the deceased joined service in December, 1984 but he remained absent from duty from August, 1989 till his death on the ground of his prolonged illness. In view of the length of his regular service, he was not eligible for leave treatment and other benefits during his absence. No premium for the MP No. GI (EDLI) 30458 was deducted from his salary. The premium amounts under the other policies were paid upto 1989 -90 from the salary and thereafter the deceased was not entitled to receive payment of any salary because of his prolonged absence. The respondent No. 1 however paid premium upto March, 1992 purely on humanitarian ground. The deceased being the policy holder was responsible for non -payment of the amounts after March, 1992 as per the letter of authorisation given to him. As he did not pay the premium after March, 1992 the two policies lapsed.