An insurer cannot deny a claim based on the late payment of premium by the employer if the premium was later accepted without objection.

JUDGMENT :

A. ABHISHEK REDDY, J.

Heard the learned counsel for the parties.

2. This writ petition has been filed for the following relief(s):-

“That this is an application for issuance of a writ in the nature of Mandamus, commanding and directing the respondents to make payment of remaining insurance claim in the case of late husband of the petitioner namely, late Amod Rai to the tune of Rs. 2,80,109/- (Two Lakh, Eighty Thousand, Once Hundred and Eight only), which has been paid Rs. 19,892/- only (Nineteen Thousand, Eight Hundred and Ninety-two Only) against the full claim of Rs. 3 Lakhs only and/or may pass such any other order/orders for which the petitioner may be found legally entitled to.”

3. It is the case of the petitioner that during the life time of her husband, namely, late Amod Rai the respondent BSNL had taken a Group Insurance Scheme for a claim amount of Rs. 3 lakhs. That husband of the petitioner late Amod Rai had died on 11.02.2019 and thereafter the petitioner along with her son and two daughters filed a claim petition before the respondent LIC- Corporation. However, the claim of the petitioner was denied and she was paid only an amount of Rs. 19,892/- as against the full claim of the Rs. 3 lakhs. Learned counsel for the petitioner submits that the petitioner is entitled to the full amount of Rs. 3 lakhs as she is a nominee of her late husband. Learned counsel for the petitioner submits that the claim of the petitioner has been denied solely on the ground that the policy of the petitioner has lapsed due to non payment of the premium amount by the employer/BSNL. It is submitted that the respondent- Corporation has accepted the premium paid by the employer/BSNL on 15.03.2019 and the petitioner cannot be blamed for the lapses if any committed by the said employer. Learned counsel further states that once the respondent- Corporation has accepted the premium amount from the employer/BSNL, the petitioner cannot be denied the full claim by the LIC Corporation. Learned counsel has, therefore, prayed this Hon’ble Court to allow the present writ petition and direct the respondent- LIC corporation to pay the full claim amount after deducting an amount of Rs. 19,892/- which has already been paid.

4. In the counter affidavit filed by the respondent BSNL, the above facts have not been controverted. Learned counsel appearing on behalf of the respondents- BSNL states that the premium amount has been paid by the BSNL on 15.03.2019 and the same was accepted by the LIC Corporation. Learned counsel has further stated that once the premium has been accepted, the benefits which are payable under the policy have to be necessarily given to the employees.

5. Per contra, on the other hand learned counsel appearing on behalf of the respondent LIC Corporation has vehemently opposed the very maintainability of the present writ petition. Learned counsel has stated that the respondent- BSNL had taken a Group Insurance Scheme for its employees. That as per the terms and conditions of the said policy, the employer is obligated to deposit the premium amount well before the last date. However, in this particular case the employer has deposited the premium amount only on 15.03.2019 whereas the deposit of the premium for the month of January, 2019 should had being made by 20^th of the said month. Further, it is submitted that there is no grace period order the Group Insurance Scheme and the policy will lapse. Learned counsel has stated that mere acceptance of the premium amount by the respondents- Corporation does not absolve the liability of the employer and in case the petitioner has any grievance, the remedy is to seek compensation from the employer i.e. Respondent BSNL and not the LIC corporation. Learned counse