Dismissing LIC's revision petition which had said that the insurance company was ready to pay the costs and its officials be not burdened with the same, the National Consumer Disputes Redressal Commission observed there was "dereliction of duty" by the LIC officers and instead of tackling the problem, it has chosen to challenge the state commission's order.
"The officers of the LIC of India constitute the LIC itself. There is dereliction of duty. Lamentably, the LIC pays no heed to indiscipline prevalent in its branches.
"It is surprising to note that instead of tackling the issue by taking the bull by horns, it has chosen to file a revision petition before this Commission. Instead of having sympathy with the widow of the deceased, they have caused incalculable damage to her by dragging her to consumer foras.
"The order passed by the state commission is well-reasoned and we see no flaw therein. The revision petition is bad and therefore, it is dismissed at the time of admission," the bench presided by Justice J M Malik said.
The state commission had imposed the cost on LIC officials saying they had rejected the woman's genuine claim on flimsy grounds and had upheld a district forum's order directing the insurance company to honour the woman's claim for insured amount of Rs one lakh.
The district forum's order had come on Haryana native Shakuntala's complaint alleging that the LIC had rejected her claim for insured sum after her husband's death in February 2006 alleging that the insured had deliberately concealed his heart problem from it.
The insured, late Satbir Singh Tandon, had bought a LIC policy for a sum insured for Rs one lakh in May 2004, his wife had said in her complaint.