Demand Death Decree Absurd Lic Pay Rs 8 5 Lakh Murdered Man Mother

A consumer commission in Patna has directed LIC to pay over Rs 8.5 lakh to the mother of a policyholder who was allegedly kidnapped and murdered in 2006, holding that it was “absurd” to insist on a civil court’s declaration that the insured had died in order to settle the claim.

President Prem Ranjan Mishra and member Rajnish Kumar granted the relief after the mother fought for nearly 12 years as the Life Insurance Corporation of India (LIC) had refused to settle the claim alleging that the insured’s death had not been legally established despite a police report concluding that he was murdered.

“Asking the civil court for a decree regarding the declaration of civil death of the insured by the opposite party (LIC) is quite absurd and non-sense,” the June 23 order read.

The commission was hearing a complaint alleging a deficiency in service by LIC. The complainant said LIC failed to decide her claim arising from the death of her son, Purshottam Kumar, who had taken two policies carrying a combined sum assured of Rs 6 lakh, along with accidental benefits.

The complainant, represented by advocate Gushiya, said her son Kumar was on his way to Dighwara Chapra on March 8, 2006, when he was kidnapped and murdered. His father, Hardeo Prasad, then lodged a case and an investigation followed. The chargesheet filed subsequently named three accused in the case.

The mother, who is the nominee mentioned in Kumar’s insurance policies, approached LIC with all the relevant papers after his death, but the claim was not granted. It was alleged that LIC insisted that the death of the insured was not established since they had not submitted a civil court’s decree regarding the death.

LIC, represented by advocate Praveen Kumar Sinha, pointed out that the court acquitted the accused in the case on July 20, 2010, but the judgment was not produced before it. The company said the judgment may have clearly explained the reasons for the acquittal, especially in case Kumar was not murdered or if he was found to have not died.

The commission allowed the complaint and directed LIC to pay the sum assured along with accidental benefits under both policies, totalling Rs 6 lakh, with 15 per cent annual interest from March 2014 until payment. LIC was further directed to pay Rs 2 lakh as compensation for mental agony and physical harassment and Rs 50,000 as litigation expenses.

This ruling of the commission highlights that insurance companies cannot indefinitely withhold or reject a claim merely because a civil court has not issued a formal declaration of civil death, especially where police investigations and other records clearly establish the insured person’s death.

For consumer-related grievances, individuals may contact the National Consumer Helpline at 1800-11-4000 or 1915 for assistance.

Richa Sahay is a Legal Correspondent for The Indian Express, where she focuses on simplifying the complexities of the Indian judicial system. A law postgraduate, she leverages her advanced legal education to bridge the gap between technical court rulings and public understanding, ensuring that readers stay informed about the rapidly evolving legal landscape. Expertise Advanced Legal Education: As a law postgraduate, Richa possesses the academic depth required to interpret intricate statutes and constitutional nuances. Her background allows her to provide more than just summaries; she offers context-driven analysis of how legal changes impact the average citizen. Specialized Beat: She operates at the intersection of law and public policy, focusing on: Judicial Updates: Providing timely reports on orders from the Supreme Court of India and various High Courts. Legal Simplification: Translating dense "legalese" into accessible, engaging narratives without sacrificing factual accuracy. Legislative Changes: Monitoring new bills, amendments, and regulatory shifts that shape Indian society. ... Read More