Consumer Forum Mandates LIC and MCD to Settle Insurance Claim

The Delhi Consumer Disputes Redressal Forum has ordered LIC and MCD to pay Rs 4.8 lakh in insurance claims and Rs 40,000 in compensation to the family of a deceased MCD staff member. The forum found both entities responsible for lapse in policy payments, causing undue suffering to the family.

The central Delhi consumer disputes redressal forum has issued a directive for the Life Insurance Corporation (LIC) and the Municipal Corporation of Delhi (MCD) to jointly pay a claim amounting to Rs 4.8 lakh to the wife and daughter of a deceased MCD staff. Additionally, they must compensate the family Rs 40,000 for the distress caused.

The forum rejected LIC's defense that the insurance policies had lapsed, highlighting that the responsibility to deduct premium payments from the employee's salary lay with MCD, which failed to inform the employee of any lapses in payment.

The forum, led by President Inder Jeet Singh and member Rashmi Bansal, concluded that both LIC and MCD neglected their duties, resulting in unnecessary suffering for the family. Thus, they were held liable to pay the insurance claim and compensation. The forum also mandated a separate Rs 20,000 for legal expenses incurred by the family.

(With inputs from agencies.)