IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P. (C.) No. 29 of 2005
Subhadra Devi ... ... PETITIONER
Versus
Life Insurance Corporation of India and others ... RESPONDENTS
Coram : The Hon'ble Mr. Justice Amareshwar Sahay
For the Petitioner : Mr. Jai Prakash, Sr. Advocate.
Mr. Yogesh Modi, Advocate.
For the Respondents: Mr. Rajeev Ranjan Prasad, Advocate.
4/18.12.2008
Heard the parties. This application is being disposed of finally
at this stage itself.
The case of the writ petitioner is that her late husband namely
Late Shashi Bhushan Singh had taken two L.I.C. Policies which were
under Double Accident Benefits (D.A.B.) Scheme being Policy Nos.
60342661 dated 25.07.1980 for Rs. 20,000/- and 60383837 dated
28.07.1983 for a sum of Rs.25,000/-. Under the Scheme of those
Policies, in case of death of the Policy holder in an accident, the
L.I.C. would pay the double the amount of sum insured to the
dependants of the deceased. In other words, if the Policy is of
Rs.20,000/- then the dependent would get Rs.40,000/-.
It is not in dispute that the husband of the petitioner died in a
motor vehicle accident on 16.08.1986. After the death of her
husband, the petitioner submitted the aforesaid two Policies to the
respondent Corporation for payment of the amount under the said
two Policies. It is stated that the respondent no. 3, by issue of the
letter dated 06.10.1986 (Annexure-3), asked the petitioner to submit
the Post Mortem Report of her husband as well as the F.I.R. for
settlement of the dues under Double Accident Scheme. Pursuant
thereto, the required documents were submitted by the petitioner.
The grievance of the petitioner is that against the Policy No.
60342661 for Rs.20,000/- the petitioner was paid only Rs.24,106/- on
04.02.1987 without extending the benefit of the Double Accident
Policy Scheme.
2 W.P. (C.) No. 29 of 2005
Similarly, against the Policy No. 60383837 for Rs.25,000/-, the
petitioner was paid only Rs.28,120/- on 14.02.1987. The benefit of
Double Accident Benefit was not given to her.
The petitioner alleges that due to sudden death of her
husband in the accident, she fell in great financial trouble as she
had no earning and she had to maintain two small children.
However, after 12 years of the accident, the double benefit amount
of Rs.25,000/- against Policy No. 60383837 was paid to the petitioner
on 27.08.1998 but against the Policy No. 60342661 the double
benefit has not been paid as yet.
The petitioner, thereafter, wrote letter as contained in
Annexure-6 to the writ petition, representing the respondent no. 3 by
stating that all the required papers have already been submitted
but she has not been paid the double benefits against the aforesaid
two Policies.
According to the petitioner, due to gross negligence on the
part of the respondent Corporation in making payment against the
aforesaid two Policies, the petitioner had to suffer a lot. She could
not give proper education to her children for want of money.
Therefore, she has claimed that the respondent Corporation be
directed to pay Rs.5 lac by way of damage/compensation over
and above the amount payable to her under the D.A.B. Policies as
well as interests thereon.
A counter affidavit has been filed on behalf of the
Corporation on 11.02.2005. On perusal of the said counter affidavit,
it appears that the facts which have been stated by the petitioner
in this writ petition, have in fact not been denied.
In para-5 of the counter affidavit, it has been stated the
benefit amount of Rs.20,000/- against the Policy No. 060342661 has
already been paid to the petitioner vide cheque dated 07.02.2005
in view of the order dated 06.01.2005.
In paragraph-6 of the counter affidavit, it has been stated
that the documents relating to the present case could not be
traced in spite of best efforts of the officers of the Corporation and
those documents appears to have been destroyed.
3 W.P. (C.) No. 29 of 2005
A supplementary affidavit has also been filed on behalf of the
Corporation, wherein the claim of the petitioner for damage
against her sufferings has been refuted on the ground that there is
nothing to prove the said loss and further that such claim has been
made belatedly.
In paragraph-7 of the supplementary counter affidavit, it has
been stated that the benefit of the Double Accident Benefit
Scheme was paid to the petitioner against Policy No. 60383837 on
27.08.1998. The said payment was released after receiving the
discharge voucher from the petitioner. It is also stated therein that
from the statements made in the writ petition, it does not appear as
to whether the discharge voucher of second Policy was submitted
by the petitioner in the office of the Corporation or not.
Such plea raised by the Corporation in the supplementary
counter affidavit is wholly untenable and it appears to have been
made only to create defence. It is a glaring case of gross
negligence and latches on the part of the respondent Corporation
in making payment of the amount due under the L.I.C. Policies to
the petitioner. There is no dispute of the fact that the aforesaid two
L.I.C. Policies were taken in 1980 and 1983 but against the second
Policy of Rs.25,000/- of the year 1983, the benefits of Rs.25,000/-
under Double Accident Benefit Scheme was paid to the petitioner
on 27.08.1998 i.e. after 12 years of the accident and against the
Policy No. 60342661 of Rs.20,000/- , petitioner was paid a sum of
Rs.20,000/- under the Double Accident Benefit Scheme only on
07.02.2005 that also after an order was passed by this Court on
06.01.2005.
Thus, it is apparent that the amount legally payable to the
petitioner was paid to her after a long inordinate delay. Since the
legally payable amount of the petitioner was paid to her after
inordinate delay by the Corporation without any valid reasons and
therefore, I am of the opinion that the petitioner is entitled to the
interest for the period falling in between the first payment to the final
payment. Accordingly, I direct the respondent L.I.C. to pay interest
@ 7% from the date the first payment i.e. against the Policy No.
4 W.P. (C.) No. 29 of 2005
60342661 from 04.02.1987 to 07.02.2005 i.e. date on which the
benefit of Double Accident Benefit of Rs.20,000/- was paid to the
petitioner. Similarly, against the Policy No. 60383837, the Life
Insurance Corporation shall pay interest at the same rate from
14.02.1987 to 27.08.1998 to the petitioner.
Over and above, for the harassment, mental agony and
suffering for this long delay in payment, the petitioner is also entitled
to be adequately compensated which is assessed at Rs.50,000/-.
Accordingly, this writ petition is allowed. The respondent Life
Insurance Corporation is directed to make payment of the interest
to the petitioner as indicated above as well as a sum of Rs.50,000/-
by way of compensation against the mental agony, harassment
and sufferings which the petitioner suffered due to negligence and
latches on the part of the respondents. The payment as indicated
above must be made by the Corporation within a period of four
weeks from the date of receipt of a copy of this order.
(Amareshwar Sahay, J. )
RC/