LIC asked to pay Rs 1.24 lakh to woman for deficient services

Thane, Aug 21 (PTI) The Life Insurance Corporation ofIndia has been asked to cough up Rs 1.24 lakh after thecompany failed to honour a legitimate claim made by the widowof a beneficiary. In a recent order pertaining to the case, the ThaneDistrict Consumer Redressal Forum held LIC to be deficient inits services as it failed to verify the credentials of anotherwoman, who also claimed to have married the deceased –NitinKishid. Forum President Sneha Mhatre and member N D Kadamordered LIC to pay the claim/insured amount of Rs 50,000 fromthe date of the death of the deceased in September 2000, alongwith interest at 8 per cent per annum (amounting to Rs 64,000)besides Rs 5,000 for mental worries and Rs 5,000 towards legalexpenses to the legally married woman. The claimants Anita Nitin Kashid and her daughter,residents of Nuribaba Dugha road of Thane, claimed in theirapplication that the deceased worked with the Thane MunicipalCorporation since 1990 and he had in 1998 taken the LICÂ’smoney back policy for Rs 50,000, valid for 20 years. The duo stated that Nitin died on September 2, 2000 afterwhich they lodged their claim with LIC. The insurance company, however, rejected the claimstating that the policy holder had given the name of oneShakuntala as the nominee instead of the present claimant inthe policy papers. LIC contested the claim and submitted that theclaimant/applicant was not the legal heir of the deceasedand hence the claim cannot be settled against her. They also came up with the argument that the complainanthad not submitted a succession certificate issued by thejudical magistrate to her along with the claim papers. The Forum, however, in its order observed that thecomplainant had submitted the marriage certificate, the birthcertificate of the daughter of the deceased and NOC fromShakuntala (Nitin’s alleged second wife). LIC insisted on the complainant getting the additionalsucession certificate even when it was proved that thecomplainant was the wife of the deceased. The Forum also observed that the LIC while including thename of Shakuntala in the policy failed to verify heras the legally married wife of the deceased. All these amount to deficiency in services and hence LICneeds to in the first place honour the claim and also pay aninterest at 8 per cent per annum from the date of death of thedeceased, the Forum said. It also needs to pay the compensation for mentalsuffering and legal expenses it added. PTI COR DKRTRDS