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Delhi News: You will still get Rs 4.8 lakh if you did not pay the premium for 3 months, know where LIC missed it

Navbharat Times | October 23, 2024 11:34 AM CST

The Delhi Consumer Court ordered LIC and MCD to pay an insurance claim of Rs 4.8 lakh to the wife and daughter of a sanitation worker after his death. Apart from this, a fine of Rs 40,000 for mental agony and litigation expenses of Rs 20,000 was also ordered.

Highlights

Delhi Consumer Court imposed fine on LIC and MCD
Order to give insurance claim of Rs 4.8 lakh to wife and daughter of sanitation worker
Court imposes Rs 40,000 fine on LIC and MCD for mental agony

New Delhi: A consumer court in Delhi has given a big blow to the Life Insurance Corporation of India (LIC) and the Municipal Corporation of Delhi (MCD). The court has ordered to give an insurance claim of Rs 4.8 lakh to the wife and daughter of a sanitation worker after his death. Along with this, the court has also imposed a fine of Rs 40,000 on LIC and MCD. This fine is for mental agony and trouble. Apart from this, the court has also asked to pay Rs 20,000 spent in the case.

The matter came to light when the wife and daughter of the sanitation worker filed a complaint against LIC. They alleged that LIC had rejected their insurance claim. The employee died on October 13, 2016, after which they had applied for the claim. A bench of District Consumer Disputes Redressal Commission (Central District) Chairman Inder Jeet Singh and Member Rashmi Bansal heard the case.

What did the bench decide?
The bench said in its decision that both LIC and MCD failed to inform the employee about the consequences of not paying the premium. Therefore, the employee or his family will not have to suffer the consequences of this lapse. The Commission said in its order that no document proves that the deceased insured person (DLA or employee) was aware of the lapse of the policy or non-payment of the premium amount. It was the responsibility of LIC (opposite party 1) to ensure that the insured person was informed about the consequences of not paying the premium. But neither LIC nor MCD (opposite party 2) gave him any information about this.

Therefore, the complaint is accepted. Both LIC and MCD are jointly ordered to pay the claimed amount to the wife and daughter, the commission said in its October 14 order.

Know the full case
The commission found that the employee had joined the job in Karol Bagh zone in May 2005. He had opted for the salary saving scheme being run by LIC for MCD employees. In this scheme, the wife and daughter were made nominees for Rs 1.6 lakh and Rs 3.2 lakh respectively. The commission also noted that according to the scheme, the premium was to be deducted every month from the salary of the employee by MCD and then this amount was to be sent to LIC. However, while the insured person was alive, the premium of two policies was not deposited for three months and four months respectively, due to which they lapsed.