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Judgment
The petitioners are policy holders of Life Insurance Corporation of India who claim that they have been duped by their agent/respondent 2nd
set/respondent no. 5 who, without any authorization from the petitioners converted the very nature of the policy to which the petitioners had
consented.
From the arguments advanced on behalf of the petitioners, this Court derives that an internal committee of the LIC found that fraud was played by
respondent no. 5 who had in some measure duped some of the policy holders whose policy was commenced on the report of the respondent no. 5.
The investigation regarding the conduct of the respondent no. 5 was taken up by the CBI.
There is no clear averment in the writ petition whether the investigation has concluded and whether the petitioners who claimed to have been duped
are also shown as conspirators in any offence.
If the petitioners have been identified to be the victims of the machinations of respondent no. 5, they ought to be heard by the LIC as they claim to be
bonafide policy holders.
In case the investigation papers do not indicate otherwise, it would be open for the petitioners to make a fresh representation before the Divisional
Manager, Life Insurance Corporation of India (respondent no. 3) for any change in the policy or for adjusting the premium of the changed policy into
the policy which had originally been started by the writ petitioners.
On such representation being filed within a period of two months, the concerned respondent shall, after verifying all the facts, take a decision and
communicate the aforesaid decision to the petitioners forthwith. Needless to state that any decision by respondent no. 3 shall be a reasoned one and
shall be passed within a period of ninety days of the receipt of such representation.
With the aforesaid direction/observation, the writ petition stands disposed of.