Ramayan Singh vs General Manager, Life Insurance Corporation of India

Samarendra Pratap Singh, J. (Oral)—Heard learned counsel for the petitioner and the Life Insurance Corporation.

The petitioner was appointed as an Agent of Life Insurance Corporation and worked for 15 years i.e. from 1963 to 1978. The retiral benefit of an agent, which is distinct from an employee of the Corporation, is governed by the Life Insurance Corporation of India (Agents) Regulations, 1972 (hereinafter referred to as ''the Agents Regulations''). Under Regulation 11, an agent is entitled to gratuity and terms insurance benefit, as set out in Schedule-VI, which provides the method for calculation.

The petitioner was paid a sum of Rs.13,541/- under the aforesaid provision on 11.01.2011.

The petitioner has made prayers in two folds. He submits that he is entitled to a sum, the details of which he has set out in his representation made to the Senior Divisional Manager on 07.05.2013. The said representation has also been appended to the rejoinder to the counter affidavit. He next submits that in any view of the matter, he would be entitled to admissible interest on a sum of Rs.13541/-, which was paid belatedly in January, 2011.

Mr. Rajeev Ranjan Prasad, learned counsel appearing for the L.I.C. submits that the petitioner, being not an employee of the Corporation, would not be governed by the gratuity Act, 1972 rather the retiral benefits has been provided under the Agents Regulations, as gesture of benevolence. He submits that the maximum admissible amount to agents, who worked prior to 2007 under the Agents Regulations was Rs.1,00,000/-. As per calculation a sum of Rs.13541/- was due to the petitioner, which was paid in January, 2011. Furthermore, the petitioner has already made representation to the Divisional Manager, a copy of which annexed to the rejoinder.

Heard learned counsel for the parties. The admitted dues appertaining to gratuity and term Insurance benefits admissible under Regulation 11 of the Agents Regulation was paid only in the year 2011, though the petitioner handed over the charge in the year 1978. In this view of the matter, I direct the Insurance Corporation to pay admissible interest to the petitioner on the aforesaid amount from the date he submitted his representation for making payment of gratuity and other benefits.

So far as the other relief is concerned, if the petitioner files a fresh representation before the Senior Manager, Patna Division No.-II along with the supporting documents, the later would consider his claim and provide a personal hearing as well. The claim of the petitioner should be decided within three months from the date of filing of the representation.

With the aforesaid observation, this application is disposed of.