LIC, MCD directed to pay Rs 4.8 lakh claim, Rs 40,000 compensation

The central Delhi consumer disputes redressal forum has directed the Life Insurance Corporation (LIC) and Municipal Corporation of Delhi (MCD) to pay a claim amount of Rs 4.8 lakh to the wife and daughter of a deceased cleaning staff of the civic body, along with a compensation of Rs 40,000, for causing them sufferings, harassment and mental agony. Rejecting the LIC's argument that the policies had lapsed, the forum also observed that the contract to deduct the premium amount from the salary and then remit it to the insurer was between the MCD and the LIC and the employee was unaware of the non-deduction of the said amount. The forum comprising President Inder Jeet Singh and member Rashmi Bansal was hearing a complaint filed by the wife and daughter of a deceased safai karamchari, who alleged deficiency in service by the LIC for rejecting their claims. In an order dated October 14, the forum noted that the employee, appointed in the Karol Bagh zone in May 2005, had opted for the ...