The Life Insurance Corporation of India (LIC) has been sharply condemned by the Madhya Pradesh State Consumer Disputes Redressal Commission for what it termed ‘irresponsible behaviour’ stemming from the corporation’s refusal to accept woman as the legally wedded wife of a deceased policy holder despite all supporting evidence.

LIC has been ordered to pay the complainant, Sangeeta Bai, widow of Umesh Yuvnati, a sum of Rs. 1,68,071.

The Forum castigated LIC for attempting to file ‘false pleas’ and dismissed the corporation’s appeal.
Yunvanti was killed in an accident.

The Forum noted that Yuvnati had taken two life insurance policies worth Rs. 1,57,071, for which his wife was the nominee. After his death, Sangeeta Bai applied for the assured sum, but she was denied it.

Sangeeta Bai approached the District Forum submitting that LIC had denied payment citing a case between her and her mother-in-law and father-in-law in the Civil Court about entitlement of money to be received by them in the event of Yunvati’s death, and that a compromise had been reached.

Later, LIC said since a succession certificate had not been filed, the complainant was not entitled to the sum assured under the policies.

The Forum, finding in Sangeeta Bai’s favour, directed the LIC to pay her Rs1,57,071 with interest at the rate of 8% per annum from November 2, 2010, Rs10,000 as compensation for mental agony and Rs1,000 as costs.


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