ORDER

S.N. Aggarwal, President - Shanti Devi purchased the Life Insurance Policy from the appellants under the Jeevan Sanchay Plan on 28.12.1999 for an amount of Rs. 60,000 through their approved agent Darshan. The premium was to be paid @ Rs. 529 per month. Shanti Devi got it converted under the Salary Saving Scheme. Shanti Devi was an employee of Municipal Council, Bathinda, respondent No. 2. The assured and the appellants had given in writing to respondent No. 2 for making the payment of premium by deducting the same from the salary of assured. Shanti Devi died on 14.10.2002 on which respondent No. l, being the husband and nominee of Shanti Devi lodged the claim with the appellants. It was repudiated by the appellants vide letter dated 11.12.2002 on which respondent No. 1 filed a complaint against the appellants and respondent No. 2 for claiming the insurance amount with compensation, interest and costs.

2. The appellants filed the written reply. It was admitted that Shanti Devi had purchased the Life Insurance Policy for an amount of Rs. 60,000 in December, 1999 and she was to pay instalments of premium to the tune of Rs. 529 per month. However, no premium was paid by the assured