Awards passed by the Permanent Lok Adalath are final under the Legal Services Authority Act, 1987, and will not be interfered with under Articles 226 or 227 of the Constitution unless they are perverse or contain serious discrepancies.

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.02.2026, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT

The petitioners are the senior ofÏcers of the Life Insurance Corporation of India and were the respondents in O.P. No.8593/2020 on the files of the Permanent Lok Adalath for Public Utility Services, Ernakulam. The challenge raised in this writ petition is against the findings in Ext.P20 award passed in the original petition which was filed by the 1st and 2nd respondents herein.

2. The facts that led to the filing of the original petition are as follows:

2.1. The respondents 1 and 2, the petitioners in the original petition referred to above, are the widow and son of Late V.M. Manoharan, (herein after referred to as ‘Agent’) who was an LIC agent attached to the LIC Branch No.1, Alappuzha which is coming under Ernakulam Division of LIC of India. According to the respondents the said ‘agent’ was working with LIC since 20.07.1983 and he was granted exemption from the agency profession during 2009 when he completed 26 years of service. Even thereafter, he continued his agency on receiving adequate commission which according to the petitioners were the means of livelihood of the said agent. As per the terms and conditions of the agency, the agent was enrolled as a member of Group Insurance Policy of LIC which was exclusively floated for the agents of the LIC. As per the terms and conditions in the said group policy, an amount of Rs.5,00,000/- was receivable to the legal heirs in case of death of the insured initially and later the same was enhanced to Rs.10,00,000/-.

2.2. On 18.04.2019, the said agent passed away, consequent to which, the respondents raised a claim for the amount as covered by the Group Insurance Policy. However, the claim was rejected by the petitioners on the ground that, sufÏcient premium was not available in the account maintained by the agent to discharge annual premium of the policy. Nonethless, considering the fact that the deceased was an agent of the LIC and taking note of the service rendered by the said person to the organization, an ex-gratia payment of Rs.2 Lakhs was fixed and the same was paid to the respondents in full and final settlement of the claim. After receipt of the said amount, the respondents continued their claim and as part of the same, the original petition as referred to above was submitted before the Permanent Lok Adalath for Public Utility services.

3. The petitioners appeared before the said forum and submitted a written statement, disputing the claim of the petitioner by raising various contentions which includes the lack of adequate amount in the account of the deceased agent so as to appropriate it towards the annual premium and that the respondents have received the ex-gratia payment towards the full and final settlement of the amount. Therefore, it was contented that the respondents were not eligible to claim any further amounts.

4. However, as per Ext.P20 award passed by the Permanent Lok Adalath and Public Utility Services, the claim of the respondents was allowed, by holding that the respondents are entitled to realize a sum of Rs.8 Lakhs being the balance amount due to the respondents on account of the Group Insurance Policy of the deceased with interest thereon on at the rate of 9% from the date of award till realization. A further sum of Rs.10,000/- was awarded towards the cost of proceedings as well. This award is under challenge before this Court by the petitioners herein.

5. A detailed counter afÏdavit has been submitted by the respondents, controverting the averments contained in the writ petition and along with the said counter afÏdavit, all the documents which formed the basis of the award passed by