The Calcutta High Court passed an Order that LICI is bound to disburse the whole amount of assured value of the policy in this instance case ‘Sambhunath Bhandari & Anr. Vs. The Regional Manager, Life Insurance Company of India & Ors.’
The Hon’ble Single Judge Sabyasachi Bhattacharyya passed this order.
The petitioners are the parents of their deceased son, who had two insurance policies with Accidental – Death Benefits, for which his son had made nominee one policy in the name of father and one in the name of mother.
After the death of the son in an industrial accident his father claimed the payable amount before the Life Insurance Corporation of India Authority. The Authority although disburse the sum assured amount but sitting tight over the Accidental-Death Benefit amount, claiming that the petitioners did not serve all the required papers before the authority, but the petitioners had served all the relevant documents including First Information Report which disclosing that it was an accidental death and also had the KYC from the authority.
The Hon’ble Justice Sabyasachi Bhattacharyya observed that “ …However , the petitioners have annexed the First Information Report registered in connection with the demise of their son as well as other relevant documents to the writ petition…”
“… Moreover, it is evident from the records that the petitioners have not only filed the concerned policy with the respondent authorities but have also produced copies of the certificate issued… to indicate that the petitioner’s son , died of an industrial accident…”
“…Since both the petitioners are residents of a rural area in West Bengal, it is not expected that the petitioners will run from pillar to post to get a disbursal of their son’s policy amount on the latter’s demise by running after the Policy and/or the criminal court…”
“…It is clear and transparent that the documents furnished by the petitioners and annexed to the writ petition are sufficient for the LICI to be satisfied on the score of the entitlement of the petitioners to the entire amount of the Life Insurance Corporation Policy of the petitioner’s son.”
Hon’ble High Court, Calcutta pleased to direct the respondent authorities “… to disburse the amount due to the petitioners as nominees of their deceased son..”
After passing such order by Hon’ble High Court , Calcutta the respondent has filed an review application regarding the claim of one insurance policy stating that the policy had lapsed in view of premium not being paid in time. However the premium was paid with late fees soon after the demise which was also accepted by the insurance company.
In view of one Supreme Court Judgement which stated that “…the legal position that the terms of an insurance policy have to be strictly construed and it is not permissible to rewrite the contract while interpreting the term of the policy. In the said case, Condition 11 of the policy clearly stipulated that the policy has to be in force when the has to be in force when the accident takes place…”
The Court said , “… Thus it was held by the Supreme Court that apart from the fact that the respondent complainant had not come with clean hands to claim the add-on/extra accident benefit of the policy, the policy in-question being not in force on the date of the accident as per Condition 11 of the policy, the claim for extra benefit was rightly rejected by the appellant Corporation.”
The Hon’ble High Court, Calcutta is also applying the same ratio in the present case, came to the conclusion that the petitioners are not entitled to the claim relating to the accidental benefits although they are entitled to get the sum assured , which has already been paid to them by the LICI.
Advocate Dilip Kumar Saha and Advocate Dhriti Das appear for the Petitioner.