IMPORTANT POINT
LIC- Employees Provident Fund Commissioner was not an agent of LIC, as such held LIC not liable under the policy.

ORDER

K.B. Sangannanavar, Judicial Member—This is an appeal filed U/s.15 of CPA 1986 by Appellants.1 & 2/OP.1 & 2 aggrieved by the order dtd.26.10.2018 passed in CC/20/2018 on the file of Kalaburagi District Forum.

2. The Commission examined the grounds of appeal, impugned order, appeal papers and heard.

3. Learned counsel for Appellants submit that the policy obtained by deceased husband of Complainant was in lapsed condition due to non-payment of premium for the months of September, October and November 2015 respectively. For such lapsed condition, insurer refunded Rs.53,171/- being paid up value, was not considered by the Forum below before passing impugned order saddling the liability on insurer/OP.1 & 2.

4. Let us examine the impugned order. The Forum below directed OP.1 & 2 jointly and severally liable to deposit a sum of Rs.2 lakhs with vested bonus after deducting the amount of Rs.53,171/- which has been already paid to the Complainant as a paid up value amount. In our view, in so far as deduction of Rs.53,171/- is concerned, could not be said justified to saddle liability on OP.1 & 2 jointly and severally to deposit sum of Rs.2 lakhs with compensation, requires some consideration, since learned counsel for Appellants/OP.1 & 2 placed reliance on the decision of Hon’ble National Commission in RP/2514/2005 dtd.14.06.2005 in A/273/2004 arising out of the order of Karnataka State Commission in the case of LIC of India and Anr., vs. Mangai & Anr., wherein held “Life insurance policy lapsed because the premium was not paid by Employees Provident Fund Commissioner – Therefore, the claim repudiated by the insurer – Complaint allowed by the Forum and the insurer held liable under the policy – Order upheld in appeal is set aside” and the Hon’ble National Commission held Employees Provident Fund Commissioner was not an agent of LIC, as such held LIC not liable under the policy, but held Provident Fund Commissioner is liable to pay the amount awarded by the Forum, is directly bearing on the point in dispute raised in this appeal, since, OP.3/employer of insured/employee working in Govt., PU College addressed a letter on 03.01.2017 to Branch Manager of LIC stating that Mr.Jaibheema Shanthappa Doddamani, Principal of Govt., PU College, Afzalpur died on 27.11.2015 while in service and his premiums were not deducted in his salary for the month of September, October, November 2015 for three months due to technical problems in HRMS, suffice to hold that OP.3 is liable to pay compensation to the Complainant as awarded by the Forum below in favour of the Complainant. In such conclusion, Commission proceed to allow the appeal, consequently set aside the order dtd.26.10.2018 passed in CC/20/2018 on the file of Kalaburagi District Forum in so far as Appellants.1 & 2/OP.1 & 2 are concerned, and directed OP.3/Principal of Govt., PU College, Afzalpur, Kalaburagi to deposit a sum of Rs.2 lakhs with vested bonus which has to be calculated with the assistance of OP.1 & 2 after deducting Rs.53,171/- which has been already paid, along with interest at 6% p.a. from the date of complaint till realisation, and do pay Rs.10,000/- towards mental agony and Rs.5,000/- towards cost of litigation within 60 days from the date of this order.

5. The amount in deposit is directed to be refund to Appellants.1 & 2 with proper identification by their advocate.

6. Notify copy of this Order to the District Commission and parties.