Prime Minister's Office helps family get insurance settlement

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  • appus
    • Jan 2011
    • 4377

    Prime Minister's Office helps family get insurance settlement

    In a first-of-its-kind case before the Madras High Court Bench here, the Prime Minister's Office in New Delhi came to the rescue of a 37-year-old woman, her two daughters and mother-in-law in getting the life insurance claim of her deceased husband who had made the Prime Minister's National Relief Fund (PMNRF) as the nominee in his insurance policy.

    The case relates to a writ petition filed by M. Vasanthi of Keelavayali in Sankarankovil Taluk of Tirunelveli district, her daughters (aged 11 and nine) and her 63-year-old mother-in-law.

    They had sought a direction to the Life Insurance Corporation of India (LIC) to settle the claim with respect to an insurance policy for Rs.1.4 lakh taken by K. Marimuthu, who died in November 2005. According to the petitioners, the LIC refused to disburse the claim amount to them, despite their taking up the matter with officials at various levels, including the ombudsman.

    Finally, the corporation issued a communication to the petitioner on January 11 stating that the money could be settled only in favour of the PMNRF, the nominee in the present case, as per Section 39 of the Insurance Act, 1938.

    The petitioner was also informed that a ‘claim discharge voucher' had been forwarded to the PMO on November 5, 2008, and the money would be deposited in the PMNRF account once the voucher was returned by the PMO, along with the signatures of the authorised officer, to the Sankarankovil branch office of the LIC.

    Subsequently, the petitioner was told that a valid discharge voucher had been received on February 28. On the same day, the High Court ordered notice to the LIC as well as the Secretary, PMNRF to reply to the writ petition filed by the petitioners.

    In reply, P.K. Bali, Under Secretary, PMNRF, wrote to Assistant Solicitor General K.K. Senthilvelan on March 14 stating that the PMO had no role to play in the writ petition as the matter had to be settled as per rules and regulations governing the LIC.

    The letter written by Mr. Bali also read: “It is requested that the position of the PMNRF in the case may be brought to the notice of the honourable court. Also, considering the fact that the insured amount could be of value to the petitioner, a sympathetic view could be taken by the High Court towards the petitioners.”

    On the basis of the letter, the Assistant Solicitor General expressed no objection in disbursing the amount to the petitioners.

    PM's Relief Fund

    Justice B. Rajendran recorded his appreciation for the PMO as well as the Assistant Solicitor General for the prompt action taken in the case of the petitioner and directed the LIC to disburse the claim amount to the petitioners, who claimed to be living in penury.
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