HC upholds Lok Adalat’s order to pay Rs. 20,000 compensation
Mysore/Mysuru: The High Court (HC) has upheld the order of the Lok Adalat which had directed Life India Corporation (LIC) to provide a compensation of Rs. 20,000 to the policy holder for not informing him (policy holder) about his cheque being bounced and for lapsing the policy.
Nadeem Ahmed Khan, the policy holder and a resident of Rajivnagar in city, has been paying the policy premium once a year and on Dec. 2, 2010, Nadeem had given a cheque for Rs. 6,514 towards the payment of the premium to LIC.
But after six months, Nadeem received a letter from LIC which stated that his policy was lapsed due to non payment of the premium. When Nadeem went to the LIC and enquired, the LIC officials then told him that his cheque had been bounced as his signature could not be matched. Also, he was told that the bounced cheque was sent to him through speed post.
Left with no other options, Nadeem paid the policy premium along with a fine of Rs. 431 and got the policy renewed. But he did not receive the bounced cheque through speed post as told by LIC officials. When Nadeem got his Bank passbook updated, he came to know that cheque bounce charge was deducted from his account.
In this backdrop, Nadeem filed a case against LIC at Mysuru Lok Adalat and the Lok Adalat Chairman, who took up the case, found that LIC had not formally informed policy holder Nadeem about cheque bounce and also not complained Postal Dept. about speed post not reaching the addressee even after 3 months.
On Mar. 21, 2014, Lok Adalat Chairman N.V. Dharwadkar, Members C. Boregowda and Anitha N. Joshi ordered LIC to provide Rs. 20,000 as compensation to Nadeem and to return the fine amount of Rs. 431 with 9 percent interest to policy holder Nadeem.
Questioning the Lok Adalat order, the LIC approached the High Court and High Court Judge Justice Anantharamanath Hegde upheld the Lok Adalat’s order and dismissed the petition filed by LIC on June 10, 2022.