Case nº Revision Petition No. 1423 of 2006 With Revision Petition No. 3972 of 2006 of National Consumer Disputes Redressal Commission, August 13, 2009 (case 1. Asha Garg and Others, 2. Life Insurance Corporation of India Vs 1. Life Insurance Corporation of India, 2. Asha Garg and Others)

JudgeDushyant Swaroop, Sukhbir Singh, S. P. Mittal
PresidentB. N. P. Singh (Presiding Member) & S. K. Naik (Member)
Resolution DateAugust 13, 2009


B. N. P. Singh (Presiding Member)

Salient features of the case are that deceased Yogendra Garg, husband of petitioner No. 1 and father of petitioner Nos. 2 and 3 obtained an insurance policy payable with double benefit, in case of accident, from respondent/ insurance company. The policy commenced from 28.8.1989. Undisputedly half yearly premium which was due on 28.8.1992, could not be paid even within 30 days of the grace period in terms of the policy. In the event of failure of the insured to pay due premium within the grace period the policy was to lapse. However, liberty is to the assured that lapsed policy can be renewed within five years with the consent of insurance company but during life time of the assured, after premium notice of schedule of late fee is given. However, while half yearly premium was due on 28.8.1990 assured having met with an accident died in night of 7.1.1991. The assured preceding his death on 7.1.1991, sent Rs. 1285.70 inclusive of late fee charges through UPC. When legal representatives of the deceased lodged claim with insurance company, it was repudiated on premises that premium for cheque was tendered on counter, on 10.1.1991, after death of the assured. The insurance company held that since preceding receipt of cheque, the assured has died and policy had not been renewed, liability of the insurance company to pay insurance value had ceased.

  1. Aggrieved with repudiation of claim, the petitioners approached District Forum seeking direction to the insurance company to pay insurance value alongwith interest of 18% p.a. from the date of death of deceased. The claim of petitioners was resisted by insurance company holding that policy of the deceased stood lapsed on the date of his death and premium due on 28.8.1990 was received at their cash counter only on 10.1.1991. The insurance company negated assertion made by petitioners about deceased remitting cheque in question to the insurance company on 7.1.1991 by post. The District Forum considering pleadings of the parties and also affidavit evidence that were led in course of proceedings, negating pleadings of the insurance company held that there was no clinching evidence about someone tendering cheque at their cash counter on 10.01.1991. Conversely the District Forum endorsed contentions raised on behalf of petitioners about remittance of cheque on 7.1.1991 towards premium due on 28.8.1990. The District Forum based on these findings, accepted...

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