E.LALITHA Vs. LIFE INSURANCE CORPORATION INDIA

JUDGEMENT

(1.) This is an appeal preferred by the complainants against the inadequacy of the amount granted by the District Forum.

(2.) The case of the complainants in brief is that the first complainant is the wife and complainants 2 and 3 are the children of late Eswar Goud who took policy for Rs.50,000/- from the opposite parties-Life Insurance Corporation of India covering the period from 28.1.1998 to 29.1.2008. While so, on 29th /30th April, 2001 he met with an accident and admitted into Government General Hospital, in a state of Coma. The family members could pay premium upto January, 2004. However, they could not pay the premium for the year 2005. He died on 10.12.2005. Thereupon a claim was made enclosing all the documents showing they are the nominees of the deceased. The Insurance Company repudiated the claim on the ground that the policy was not in force by the date of death of the insured. Therefore, the complainants filed the complaint for the amount covered under the insurance policy.

(3.) The Insurance Company resisted the case. However, it admitted the issuance of policy and the fact that he received injuries and admitted in the hospital and ultimately died on 10.12.2005. The premiums were paid only upto 1/2004. The duration between the unpaid premium and the date of death of the life assured was 1 year 5 months. The policy has been lapsed by the date of death. By virtue of condition No.10.2 of the policy, the nominees would be entitled to the amount paid but not the accident benefit. Since the policy is money back policy under table and term 75-20, survival benefit of 20% of sum assured i.e Rs.10,000/- was already paid on 10.1.2003. The complainants were entitled to the prorate amount of Rs.26,050/-. The death was not proximate to the accident and therefore prayed for dismissal of the complaint.