Writ Petition No. 8688 of 2004 · Andhra Pradesh High Court

The present writ petition is filed questioning the action of the first respondent in not disbursing the amount due under policy No. 62785251 and 671680007 to the nominee/petitioner herein. As per the averments made in the affidavit filed in support of the writ petition, the husband of petitioner insured with first respondent for a sum of Rs.1,00,000/- vide policy Nos. 62785251 and 671680007 (each for Rs.50,000/-) and mentioned the petitioner as nominee to receive the risk benefits, and died on 1-5-2003 leaving behind petitioner and two children. Pursuant to the death of her husband, petitioner approached the first respondent for payment of risk benefits. While so, the second respondent herein filed a suit in O.S.118 of 2003 for partition of suit schedule properties into 3 shares and claiming 1/3rd share in the risk benefits of the above stated policies, as legal heir of husband of the petitioner, together with an application for grant of interim injunction.

No orders were passed in the interim application and the same is still pending consideration. The petitioner claims that she was declared as nominee to receive the risk benefits of the subject policies and as per section 39 (1) of the Insurance Act, 1938 the payments shall be made to nominee in the event of death of the insured. Learned counsel for petitioner submitted that the petitioner is legally entitled to receive the risk benefits of her husband and she was only declared as nominee to receive such benefits and in the absence of any restraint order from the competent court the first respondent cannot withhold the risk benefits. It is further stated that the second respondent is claiming only 1/3rd share in the said amount and there is no dispute as regards remaining 2/3rd amount, which could be immediately disbursed to the petitioner, enabling her to meet urgent necessities. Heard the learned counsel for petitioner and learned standing counsel for first respondent corporation.