MURTIZAPUR, AUG 20: The District Consumers Grievances Redressal Forum has directed Senior Divisional Manager of Life Insurance Corporation (LIC), Amravati, Area Manager, Mumbai, and Branch Manager, Akola, to pay Rs 20,000 to Sunanda Kanthale towards insurance claim besides interest on the amount from October 22, 1993, till the date of payment at a rate of 12 per cent.The forum has also directed LIC to pay compensation of Rs 10,000 to the woman for causing mental tension to her during the four years, after her husband's death, in releasing the insurance amount.If the insurance company failed to pay the compensation within two months from the date of receipt of copy of the judgment, the company will be liable to pay interest at a rate of 18 per cent on the amount till final payment besides legal expenses of Rs 250, the forum ruled.According to complainant Sunanda Kanthale, her husband Manoharrao Kanthale who worked as a stores superintendent with the Amravati branch of Maharashtra State Corporation, purchased an insurance policy for Rs 20,000 on November 28, 1992. The policy which was a non-medical one, was scheduled to mature on November 24, 2004, she said. Unfortunately Manoharrao passed away on October 22, 1993, 10 months and 25 days from the date of purchasing the instrument.``As I am the nominee in the policy, I staked my claim for an amount of Rs 40,000 (under double benefit provision in accident cases) and made an application to the Akola Branch Manager of LIC. The senior manager of LIC (Amravati Division) however refused to settle the claim vide his letter dated August 4, 1994,'' she said. As the policy was a non-medical one, the reason given by the official for not settling the claim was also a bogus one, she alleged. Sunanda then wrote to the area manager of LIC, Mumbai, justifying her claim. The Mumbai office too (vide letter dated April 20, 1995) refused to settle the claim, Kanthale added.``I then lodged a complaint with Akola District Consumers Grievances redressal forum,'' Sunanda said. ``In the complaint, I appealed to the forum to issue the necessary directives to the LIC for paying Rs 40,000 along with 18 per cent interest, a compensation of Rs 50,000 towards mental tension caused and Rs 1,000 towards legal expenses.''Defending the stand taken by the company, the LIC refuted all the allegations made by Sunanda. Manoharrao, who held the policy, had kept the information about his health a secret while purchasing the instrument, the company alleged.The forum referred to columns 14 and 26 in the application form where the policy purchaser had made statements about his health. The form was duly singed by Dr B R Jain, the forum said. The LIC officials produced proofs before the forum regarding heart disorder of the policy holder and sick leave availed by him after taking the policy. However, they could not prove that Manohar was not well on the day of purchasing the policy.The forum ruled that though the compensation amount, demanded by the complainant, appeared exaggerated, considering the troubles she had to face in the last four years for settlement of claim, the company should pay her Rs 10,000 towards compensation.
