Consumer Forum orders LIC to pay Rs 5.5 lakh to woman

Ahmedabad, May 21 (UNI) The Consumer Disputes Redressal Forum, Ahmedabad, today ordered LIC to pay the widow of an insured person a sum of Rs 5.5 lakh, with 9 per cent interest from September 3, 2004, till realisation, besides other benefits as per the conditions under the two policies of her late husband.

The direction came following a complaint filed by the city-based Consumer Education and Research Society (CERS) on behalf of Rekha Patel, the widow of policy holder Alpesh Patel, alleging deficiency in service and unfair trade practice.

The Forum ordered LIC to pay Rekha Rs 5 lakh under one policy and Rs 50,000 under another, with 9 per cent interest from September 3, 2004 till realisation, besides other benefits as per the conditions under the two policies of her late husband. It has also ordered the LIC to pay Rekha Rs 5,000 for her mental agony, besides Rs 2,000 towards cost.

On February 13, 2003, Alpesh A Patel had taken two LIC policies -- one of Rs 5 lakh and another of Rs 50,000, with his wife as the assignee. He had paid the premiums regularly.

On January 5, 2004, Alpesh drowned in the Narmada Canal at Jaspur, Kalol taluka (Gandhinagar district). On February 11, Rekha accordingly informed the LIC about his death, with duly filled-in claim form and necessary documents. She also provided a copy of the First Information Report (FIR), Panchnama, post-mortem report and final police report.

The LIC did not sanction the claim amount despite the lapse of more than six months. After nine months, it repudiated the claim, arguing that Alpesh might have committed suicide not being able to bear the pain caused due to kidney stone.

The Forum, based on the post-mortem report, concluded that it was death due to shock followed by drowning. It cited the divisional magistrate's report that it was a clear case of accident and there was no reason for Alpesh to commit suicide. Thus, the delay on the part of the LIC to avoid the payment of the claim was a deficiency in service and an unfair trade practice.

UNI