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LIC told to cough up dues

Life Insurance Corporation (LIC) has been ordered by Calcutta High Court to pay the entire ?assured amount?, with interest, to the nominee of a policy-holder who died 19 years ago.

The LIC had been refusing payment on the grounds that the nominee had failed to produce the required documents related to the policy-holder?s occupation.

Justice G.C. Gupta of the court, acting on a petition filed by the nominee, ruled on Wednesday: ?There was nothing wrong in the policy and the payment of premium. The LIC will have to pay the assured amount (Rs 75,000) with proper interest. It is not necessary for the nominee to place the documents to prove the occupation of the policy-holder.?

The policy-holder, Chhaya Rani Mondal, a resident of the city, died on November 30, 1987. The nominee was husband Nilkamal.

?The LIC had asked Nilkamal to submit a number of documents related to the age, illness and address of Chhaya Rani. The documents were all submitted in time,? Uttam Majumdar, who appeared for Nilkamal, told the court.

Chhaya Rani had mentioned in the application form for the policy that she was a nurse. The insurance company asked Nilkamal to produce a certificate from the chief medical officer of health to prove the veracity of her claim.

Nilkamal pleaded that the certificate could not be obtained as his wife used to work in a doctor?s chamber. But the company refused to hear his plea.

?For eight years, my client sent several letters to the LIC, asking for the money. In 1995, he was informed that the assured amount would not be paid,? the lawyer submitted.

Challenging the decision, Nilkamal moved the high court the next year. The petition came up for final hearing on Wednesday.

?My client is very ill and cannot speak,? Majumdar told the judge, who then asked Nilkamal?s elder son to file an affidavit detailing his father?s condition.

Majumdar also alleged that nominees of most policy-holders face similar harassment when they approach the LIC for money.

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