L.I.C. vs Munni Devi

HEARD. Briefly stated the relevant facts are that late Sh. Nathilal, the deceased insured had obtained a Life Insurance Policy for Rs. 25,000/- from the appellant on 28.7.1992. The mode of payment of the premium was annually. The deceased has has paid the first premium of Rs. 1,818/- only. The second premium fell due on 28.7.1993. The insured, however, died on 20.10.1993 but without paying the second annual instalment of premium.

SMT. Munni, the complainant respondent was the wife of the insured and as such nominee in the policy. She filed her claim for the assured sum as late as on 18.9.2000. The appellant, however, repudiated her claim on 12.7.2001 on the ground of delay in filing the claim. The Forum, however, rejected the repudiation of the claim of the respondent on the ground that the repudiation was made without applying their mind by the authorities concerned. The Forum, therefore, allowed the complaint of the respondent and directed the appellant to pay the assured sum of Rs. 25,000/- with all other benefits under the policy with interest @ 9% p.a. from 12.7.2001 and also pay a sum of Rs. 500/- as cost of litigation to the respondent. The learned Counsel for the appellant urged that not only the claim submitted was highly belated but also that no claim was entertainable in view of condition No. 2 of the policy in question. We find force in the argument of the learned Counsel.

It is well established position of facts that the claim had been filed after the expiry of more than seven years of the death of the deceased insured. The complaint filed was obviously barred by limitation prescribed under Section 24-A of the C.P. Act, 1986 (the Act). The complaint was liable to be dismissed on that ground alone.

ON merits too we find that condition No. 2, relied upon by the appellant, reads as under : "Payment of Premium-A grace period of one month but not less than 30 days will be allowed for payment of premium. If death occurs within this period of the policy will still be valid and the sum assured is paid after deduction of this said premium as also unpaid premium falling due before the next anniversary of the policy if the premium is not paid before the expiry of the days of grace the policy lapses."

In the instant case the second premium fell due on 28.7.1993. By that date the premium had not been paid by the deceased. He did not pay such premium even within the grace period of 30 days which expired on 28.8.1993. He undisputedly died on 20.10.1993 as is found out from his death certificate. Therefore, condition No. 2 of the policy stood applied to the present case for the benefit of the appellant.

IN view of the above the impugned order is set aside and the appeal allowed. The amount if deposited by the appellant in connection with this appeal, shall be refunded to the appellant. Appeal allowed.