SMT.SHOBHA KESHRI v. THE CHAIRMAN,L.I.C.OF INDIA & Ors.

Mr. Sunil Kr. Verma, Advocate Mr. Rajeev Ranjan Pd., Adv. --------------- P R E S E N T Hon'ble the Chief Justice & Hon'ble Mr. Justice Kishore K. Mandal ---------- Dated, the 2nd July, 2008. We heard the counsel for the parties.

It is not in dispute that the husband of the appellant had taken two policies from the Life Insurance Corporation ( for short ‘LIC’ ). The two policies were in the sum of rupees one lac each. Since the assured died within six months of the first policy and almost a month of the second policy, the LIC repudiated the claim under section 45 of the Insurance Act, 1938.

The counsel for LIC says that against the two policies taken by the appellant’s husband, it has been decided to give ex gratia payment of rupees one lac each. He further submits that the said amount has not been accepted by the appellant and she is also not willing to give discharge certificate.

Having considered the submissions of the counsel for - 2 - the appellant and LIC, we are satisfied that the following order shall meet the ends of justice – ( i ) LIC shall give ex gratia payment of rupees one lac each to the appellant as has been decided by them, against the two policies dated 28th October, 1999 and 8th March, 2000 taken by the appellant’s husband. (ii) The receipt thereof shall be given by the appellant to LIC. However, this will not preclude the appellant in raising claim for further amount before the Civil Court in respect of the two policies taken out by her husband. (iii) If any decree is passed in favour of the appellant in such suit, the amount of rupees two lacs given to the appellant by way of ex gratia payment shall be adjusted and no interest shall be payable on this amount.