KHURSID R.BHARUCHA vs St.DIVISIONAL MANAGER, LIC OF INDIA

THE complainant is the wife of deceased Rustom K. Bharucha who was working as Field Officer in LIC and all of a sudden expired on 19.9.88 leaving behind his widow, the complainant minor daughter and two sons and has lot of responsibilities to raise the children. She has further stated that an amount of Rs.150,846.12 is due and payable to her from the opponent. THE opponent having not paid that amount she has filed a complaint to recover the principal amount with interest and cost and other damages.

THE opponent contested the claim on various grounds but at our persuasion and taking a humanitarian approach, Mr. H.M. Bhagat, learned Advocate appearing on behalf of LIC states that considering the facts and circumstances, LIC is prepared and willing to pay Rs.150,846.12 which is due from 19.9.88 i.e. date of the death of the husband of the complainant provided the complainant furnishes the joint indemnity of herself in individual capacity and as guardian of minor child and of Mr. H.S. Patel. Looking to the papers, we find that Mr. H.S. Patel was nominee in other claims and not in this claim. It will not be very possible for the widow to obtain the indemnity from Mr. H.S. Patel when Mr. Patel is not claiming any amount. However, the complainant has already field no objection and affidavit of Mr. Patel stating that he is not claiming any amount. In that view of the matter, we have persuaded Mr. Bhagat to waive that requirement especially when the LIC has taken a humanitarian and reasonable approach.

Mr. Bhagat submits that LIC cannot award more than 11% interest. We are, therefore, of the opinion that the LIC will pay the interest which they have actually realized by investing the amount payable to the complainant but if it is not possible to separate the interest earned from the investment of the amount of the complainant, the LIC will pay interest @ 11 % p.a. from the date when the amount became due and payable to the complainant. Since the opponent has taken a very positive and constructive view, we are of the opinion that no further damages should be awarded.

WE are happy that the learned Advocates of both the parties have taken a very reasonable approach. ORDER The Opponent Life Insurance Corporation of India shall pay Rs. 150,846.12 with interest which they have earned as stated above. If the amount cannot be ascertained, then will pay interest @ 11% p.a. from the date when the amount became due till the same is paid to the complainant. LIC will make the decrial payment within 4 weeks from the date of receipt of the order. Complaint allowed.