Andhra Pradesh - Anantapur   

LIC asked to pay Rs. 5 lakh to widow

ANANTAPUR: In a significant judgment, the District Consumer Disputes Redressal Forum here directed the Life Insurance Corporation (LIC) on Tuesday to pay Rs. 5 lakh compensation to a widow against four policies purchased by her husband and another Rs. 30,000, to be recovered from the salaries of three LIC officials for causing her mental agony.

Husband of one Vasundhara of Chilamattur, then working as an attendant in a social welfare residential school at Kodigenahalli, died in a road accident in 2001. He had purchased four life insurance policies in the Hindupur branch of LIC for a sum of Rs. One lakh each.

Against Vasundhara’s claims for total benefit from the policies, the LIC had stated that the beneficiary was entitled to get only Rs. 2.1 lakh against Rs. 4 lakh citing several reasons. She had made long correspondence with the Hindupur branch and the Kadapa divisional office in the matter and had also made several rounds to the two offices.

In 2003, the zonal office of the LIC at Hyderabad informed her that her claims would be settled within 45 days, but the deadline was not met by the LIC. When Ms. Vasundhara moved the district forum in 2005, it refused to accept the petition on the grounds that the maximum period of two years had lapsed after the due date was fixed by the LIC.

An unrelenting Vasundhara moved the State forum later which directed the district forum to accept the petition and dispose of the matter appropriately. Accordingly, the petition was heard in the forum here in 2007 and arguments were heard from both sides.

After the completion of arguments, in-charge president of the district forum M. Subbarayudu Naidu and member S. Lalitha gave their verdict on Tuesday directing the LIC to pay a compensation of Rs. 5 lakhs with nine per cent interest to Ms. Vasundhara from August 9, 2005 and also another Rs. 30,000 for causing her mental agony, all within 45 days.

The forum held the branch manager of Hindupur and divisional and zonal legal officers of LIC at Kadapa and Hyderabad liable for payment of compensation to the victim for causing mental agony. The Rs. 30,000 amount was directed to be recovered from the salaries of the three officers.

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LIC asked to pay Rs. 5 lakh to widow

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