Insurance firm told to pay Rs 1.35 cr to kin of consumer who paid premium within grace period before his death

Complainants Jyotsana Sharma, Gaurav’s wife, and their lad filed a assertion connected May 20, 2021, which was denied connected June 30, 2021, citing a argumentation lapse owed to non-payment of the renewal premium. The complainants claimed that Gaurav paid a premium wrong the grace period.

PNB Met Life India Insurance Company, contested the complaint, by submitting their written response, which included preliminary objections regarding maintainability, concealment of facts, and origin of enactment and claimed that “the complainants attempted to mislead the Commission by distorting facts”. However, they acknowledged that the deceased beingness assured (DLA) obtained the argumentation but asserted that helium past paid the monthly premium connected February 28, 2021.

They further claimed that the premium owed connected March 29, 2021, was not paid wrong the grace period, resulting successful the argumentation lapsing and justified the rejection of the claim.

After proceeding the counsel of some parties and going done the grounds and grounds of the case, the District Commission ordered the security institution to wage the sum assured of Rs 1 crore to the complainants, on with Rs 25,000 arsenic compensation and Rs 10,000 arsenic costs of litigation.

PNB Met Life India Insurance Company, however, filed an entreaty against the District Commission bid astatine the State Commission.

The State Commission connected proceeding the substance held that the argumentation papers explicitly indicates that the DLA elected for a monthly premium outgo plan, with the past premium outgo recorded arsenic being made connected February 28, 2021, a information acknowledged by the appellants.

“We person thoroughly examined the receipt, which intelligibly indicates that the premium owed connected March 29, 2021, was paid by the deceased beingness assured (DLA) connected March 31, 2021. This outgo falls good wrong the stipulated grace play of 15 days. The District Commission correctly concluded that the DLA made the premium outgo wrong the grace play with the adjacent premium owed day specified successful the receipt arsenic April 29, 2021.

Furthermore, fixed that the DLA passed distant connected April 28, 2021, it has been unequivocally established that the argumentation was valid and successful unit astatine the clip of his death. The appellants’ repudiation of the claim, which was based solely connected the assertion that the argumentation had lapsed, lacks capable justification,” said the State Commission.