Allowed

Mamata Swain v. Chief Manager of Life Insurance Corporation of India

Orissa HC21 Jul 2023WP(C)/4567/2020

Case brief

AI extract

What is this about?

In W.P.(C) No. 4567 of 2020, the Orissa High Court directed the Life Insurance Corporation of India to disburse matured policy amounts and benefits among the deceased husband's legal heirs (wife, two children, and nominee) within one month, overriding the strict application of Section 39 of the Insurance Act, 1938 in favor of the sole nominee, without expressing a view on the merits of the underly

What did the court decide?

Direction to respondent No.1 to disburse assured amount and financial benefits among wife, children, and nominee within one month by verifying genuine legal heirs.

Mamata Swain Vs Chief Manager of Life… — Contract and Commercial Disputes | Orissa HC (2023)

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IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) NO. 4567 OF 2020

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Mamata Swain

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Petitioner

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Mr.Subrata Panda ,Adv.

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-versus-

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…. Chief Manager of Life Insurance Opp.Parties Corporation of India & others Gurudutta Kar,Adv. For O.P.Nos.1 to 3)

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CORAM: DR. JUSTICE S.K. PANIGRAHI

Order No.

ORDER 21.07.2023

1 . This matter is taken up through hybrid arrangement.

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2. Heard learned counsel for the petitioner and learned counsel for the State.

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Signature Not Verified

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Digitally Signed Signed by: LINGARAJ BEHERA Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 05-Aug-2023 20:16:44

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3. The petitioner has filed this petition seeking direction from this Court to direct opposite party Nos. 1 to 3, more particularly, opposite party No.1/ Chief Manager of Life Insurance Corporation of India, Kendrapara Branch, Kendrapara to release the matured amount in favour of the petitioner and her legal heirs following the observation made in the order of this Court in W.P.(C) of 26370 of 2019.

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Page 1 of 4

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// 2 //

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The brief fact of the case is that the husband of the petitioner during his life time had insured his life with the opposite party Nos.1 to 3 by means of three policies bearing LIC Policy Nos. 598071265, 586735504 and 584795603 in which the opposite party No.5 was nominee. The petitioner being the wife of her husband/policy holder of above three policies, she immediately intimated the death of her husband to the opposite party No.1 and submitted application claiming death benefit. But due to non-cooperation of nominee who is the brother of the deceased, her application could not be considered by the opposite party No.1. Hence, she approached the Court by filing a petition vide W.P.(C) No. 26370 of 2019 which was disposed of with the observation that as per Section 39 of Insurance Act, 1938, the payment should be given to only valid nominee/opposite party No.5.

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5. Learned counsel for the opposite party Nos. 1 to 3 in his counter affidavit submits that although the documents including the death certificate are genuine and submitted by the wife of the deceased insurer but

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Signature Not Verified

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Digitally Signed Signed by: LINGARAJ BEHERA Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 05-Aug-2023 20:16:44

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the opposite party/insurance company is bound to act as per the Insurance Act 1938. He also cited the Section

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// 3 //

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19 of the said Act which is extracted hereunder for the sake of better appreciation:

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“Section 39” Nomination by policy holder-(I) The holder of a policy on life insurance of his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death till the authority get any direction for disbursement from any appropriate Hon’ble Court.”

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6. In view of the above the opposite party Nos. 1 to 3 could not disburse the amount to the present petitioner.

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Signature Not Verified

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Digitally Signed Signed by: LINGARAJ BEHERA Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 05-Aug-2023 20:16:44

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7. However, Considering the limited grievance of the petitioner and without expressing any opinion on the merits of the case, this Court disposes of the writ petition directing the opposite party No.1/ Chief Manager of Life Insurance Corporation of India, Kendrapara Branch, Kendrapara to disburse the assured amount and other financial benefits among the legal heirs i.e. wife of the deceased, two children of the deceased and nominee of the deceased by verifying the documents who are genuinely legal heirs. Further, the mother of the deceased has since been breathed her last no order of disbursement is passed in the present petition against her. The said exercise shall be completed

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// 4 //

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within a period of one month from the date of presentation of the certified copy of this order.

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8 . With the aforesaid observation, the writ petition is accordingly disposed of.

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9. Issue urgent certified copy of the order as per Rules.

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(Dr. S.K. Panigrahi)
Judge

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Signature Not Verified

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Digitally Signed Signed by: LINGARAJ BEHERA Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 05-Aug-2023 20:16:44

Mamata Swain v. Chief Manager of Life Insurance Corporation of India

Case brief

What is this about?

What did the court decide?

Mamata Swain v. Chief Manager of Life Insurance Corporation of India

Case brief

What is this about?

What did the court decide?

What the court decided

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