U P S R T C vs HEMLATA

SMT . Hemlata had to file Complaint No. 150/1996 before the District Forum, Badaun because even though her husband late Sri Virendra Kumar Jha paid Rs. 40 per month as premium towards the Group Insurance Scheme which was adopted by the employer U.P. State Road Transport Corporation through the local office, Assistant Regional Manager, U.P.S.R.T.C., Badaun, yet the U.P.S.R.T.C. officials and the L.I.C. made the payment of the group insurance amount treating late Sri Virendra Kumar Jha as a Class -IV employee. The District Forum has found that opposite parties 1 to 4 who are the U.P.S.R.T.C. and their various officers, were liable to pay Rs. 19,033 with 18% interest with effect from 7.6.1994 till the date of payment.

AGGRIEVED , thus, opposite parties 1 to 4 i.e., UPSRTC and its officials have come in appeal. Mr. G.S. Chauhan, learned Counsel for the appellant and Mr. R.K. Mishra, learned Counsel for the complainant have been heard and the entire record has been perused.

MR . Chauhan wanted to argue that the husband of the complainant was a Class -IV (Four) employee i.e., Group -D employee and, therefore, was entitled to group insurance amount @ Rs. 30,000 in the event of death and not @ Rs. 50,000 as claimed in the complaints.

MR . R.K. Mishra on the other hand argued that consistent deductions made from the salary of the deceased husband of the complainant was @ Rs. 40 per month which was equivalent to the payability of Rs. 50,000 as insurance amount in the event of death. He rightly argued that it is immaterial at this stage to go into this issue whether the said employee could be bracketed under Group -D or Group -C employee i.e., Class -III or Class -IV employee. He proceeds to argue that there have been instances where the premium deductions amount alone has been held to be the basis of payment of the insurance amount. It does not lie in the mouth of the appellant or the L.I.C. to take a view detrimental to the interest of the complainant to the effect that insurance amount payable to Class -III employee shall be denied though premium at that rate has been regularly deducted by the appellants and accepted by the L.I.C. There is no error whatsoever in the judgment and conclusion arrived at by the District Forum.

MR . Chauhan then argued that 18% interest is excessive. He is right. On the facts of the instance case, interest @ 9% appears to be appropriate. The appeal, therefore, succeeds in part.

IN view of what has been discussed above, the appellants are directed to pay within two months an amount of Rs. 19,033 along with 9% interest per annum with effect from 7.6.1994. They will be entitled to recover the said amount from the L.I.C. which is hereby directed to pay the amount to the appellants within another two months subject to forwarding of a receipt by the appellants to the relevant office of the L.I.C. for compensating the appellants to the extent of payment made. Parties will bear their own costs. The appeal stands disposed of thus finally.

APPEAL disposed of.