ORDER

K.C. Gupta, President - This appeal has been directed by opposite parties 1 and 2 i.e. Life Insurance Corporation of India against order dated 10.10.2007 passed by Consumer Disputes Redressal Forum-II, U.T.Chandigarh (hereinafter to be referred as District Consumer Forum), vide which complaint of respondent Smt. Sarabjit Kaur was accepted with costs of Rs. 2,500 and appellants were directed to pay Rs.1,30,000 along with interest @ 9% p.a. from the date of repudiation of the claim i.e. 27.9.2000 till the date of payment and further to pay Rs.10,000 as compensation for harassment and mental agony.

2. Briefly stated the facts are that Sh. Chattar Singh was husband of Smt. Sarabjit Kaur respondent (complainant). He was employed as XEN, MC, PH Division No. 3, Chandigarh. He got his life assured by taking LIC policy dated 28.3.1999 (Pension scheme) for the sum assured of Rs.1,30,000 under Table 122-13.13 Schedule PNGS-G102. The premium of Rs.10,368 which was payable on yearly basis was paid by him. The date of annuity was 28.3.2012 with the last premium payable upto 28.3.2011. The copy of the insurance policy is Annexure C-1.

3. It was next averred that Sh. Chattar Singh suddenly fe