DIVISIONAL PERSONNEL OFFICER Vs. THOLLABANDI NAGALAKSHMI

JUDGEMENT

(1.) Opposite party No.2 preferred this appeal against the order of the District Consumer Forum-II, Krishna District at Vijayawada directing him along with opposite party No.1/respondent No.2 herein to pay Rs.85,000/- each to the complainant with interest at 7.5% per annum from the date of complaint till the date of realization, besides costs of Rs.1,000/- each.

(2.) The case of the complainant in brief is that her husband, T.Srinivasa Rao took two insurance policies viz. No.673437616 for Rs.50,000/- and another No.673438175 for Rs.60,000/- on 16.03.1998 and 21.03.1998 respectively. The appellant, the employer of late Srinivasa Rao, has agreed to pay premium from out his salary to the Insurance Company/respondent No.2 herein. While so, he died on 19.07.2002. When she approached the Insurance Company they repudiated the claim. On that she filed complaint for recovery of the said amount along with vested bonus and other benefits.

(3.) The Insurance Company, 2nd respondent herein, had resisted the case, however, it admitted that the deceased had taken two policies, wherein the Railways had to pay premium from out of his salary. The premia for 2/1999 to 12/1999, 9/2000, 4/2001, 4.5.6/2002 were due towards first policy, and premia for 1/1999 to 11/1999, 9/2000, 1/2001, 4, 5, 6/2002 were due towards second policy. As per the terms and conditions of the policy, the policies were lapsed. However, the claim was considered on ex-gratia basis and called the Railways the reasons for non-recovery of the premium. However, they did not receive any response. Therefore, there was no legal liability against them to pay the amount under the insurance policies. Therefore, it prayed for dismissal of the complaint with costs.