J.DIVAKER RAO Vs. LIFE INSURANCE CORPORATION OF INDIA REP. BY ITS BRANCH MANAGER

JUDGEMENT

(1.) These appeals are arising out of the order dated 31.05.2007 in CC 15/2007 by the District Forum, Adilabad.

(2.) The appellant in FA 840/2007 is the complainant, whereas, the appellants in FA 1648/2007 are the opposite parties. By means of the impugned order the opposite party was directed to pay 25% of the assured amount to the complainant with interest at 9% pa from the date of repudiation of the claim till realization. The appellant in FA 840/2007 has filed the appeal seeking enhancement of compensation whereas the appellant has questioned the order in directing payment of the insurance claim. It would be convenient to dispose of these appeals by common order.

(3.) Briefly stated the facts of the case are that the complainants wife by name Sulochana Devi during her life had obtained LIC policy vide policy bearing No.682538663. for an assured sum of Rs.50,000/- from OP 1 on 16.3.99. The proposal was accepted after making necessary enquiries. The complainant was the nominee of the policy. Subsequently during the year 2004 the complainants wife fell sick and she was under treatment but she could not survive and she passed away on 13.12.2004. Right from 1999 up to the date of her death the premiums were paid. The death of the policy holder was informed to OP. 1 and on that OP 1 sent a claim form for submission which was submitted by furnishing the details along with policy bond. While so, OP 1 sent a letter dt.4.8.2005 informing to send the claim to the Zonal office which was followed by another letter dt.15.09.2005 which was received by the complainant to submit the claim before a review committee of divisional office at Hyderabad. In turn, the divisional office sent a letter dt.10.4.2006 repudiating the claim. The OPs have illegally repudiated the claim causing loss which amounts to deficiency in service. Therefore sought for direction for payment of the insured amount to the nominee.