Branch Manager, Life Insurance Corpn. Of India vs Manavinder Kaur

THIS revision petition has been filed by the petitioners/Opposite parties against the order dated 04.03.2008 passed by the U.P. State Consumer Disputes Redressal Commission, Lucknow (in short, ''the State Commission '') in Appeal No. 1346/1995 - LIC of India Vs. Manavinder Kaur by which, while dismissing appeal, order of District Forum allowing complaint was upheld.

BRIEF facts of the case are that complainant/respondent took ''Bima Sandesh Policy '' with accidental benefits from OP/petitioner in the name of her minor son Kulbir Singh Sidhu, who was 17 years and 6 months. He died on 11.6.1991 in an accident. Complainant filed claim with the OP. OP paid only basic assured amount without accidental benefits and, as accidental benefits were not paid, alleging deficiency on the part of OP filed complaint before District Forum. OP/petitioner contested complaint, filed written statement and submitted that accidental benefits were not payable, as minor was not covered in accidental benefits and prayed for dismissal of the complaint. Learned District Forum after hearing both the parties allowed complaint and directed OP to pay Rs.1,00,000/- as accidental benefits along with 18% p.a. interest from 22.09.1984 till payment. Appeal filed by the petitioner was dismissed by learned State Commission vide impugned order against which, this revision petition has been filed. Heard learned Counsel for the petitioner and authorized representative of respondent and perused record.

LEARNED Counsel for the petitioner submitted that, though, policy for accidental benefits could not have been issued in the name of minor, but still petitioner has already paid accidental benefits, but rate of interest awarded by District Forum is on higher side; hence, revision petition be allowed to this extent and rate of interest be reduced. On the other hand, authorized representative for the respondent submitted that respondent is contesting this matter since 18 years and rate of interest awarded by District Forum is not on higher side; hence, revision petition be dismissed.

AS petitioner has already paid original sum assured and amount of accidental benefits, as awarded by District Forum, we need not to go on the merits of the case. Now, the question remains only regarding rate of interest. Learned District Forum has awarded 18% p.a. interest from 22.9.1994 and learned State Commission has dismissed appeal of the petitioner. It is doubtful whether; ''Bima Sandesh Policy '' with accidental policy could have been issued by the petitioner in the name of minor. Apparently, 18% p.a. interest is on the higher side and 12% p.a. interest would meet the ends of justice. In such circumstances, it would be appropriate to reduce rate of interest from 18% p.a. to 12% p.a.

CONSEQUENTLY , revision petition filed by the petitioner is partly allowed and impugned order dated 4.3.2008 passed by learned State Commission and order of District Forum dated 24.7.1995 passed in Complaint No. 1348/94 is modified and grant of interest @ 18% p.a. is reduced to 12% p.a. interest. Rest of the order is upheld. There shall be no order as to costs.