Post office ordered to repay insurance money

Forum asks postal official to use discretionary powers to pay

  He had taken a post office life insurance policy and had paid up the premiums till his sudden death due to illness. The post office repudiated her claim on the grounds that the policy had lapsed.

The district consumer forum, Davangere ordered the post office to pay up the amount but the post office went in appeal to the Karnataka State Commission.

The President Justice Chandrashekaraiah ruled that as the Chief Post Master General had discretionary powers in special cases to allow ex gratia payment of the policy he should use them in favour of the complainant and pay up the Rs One lakh due to Jayashree. He dismissed the appeal of the post office.


The State Commission also came to the aid of a farmer, Subhash Chandra of Shimoga who had been sanctioned a loan of Rs 65,000 by the Government as he is a member of the Kalyana Yojane sponsored by the Government to help the poor.

The Deputy Chief Manager of the Dr B R Ambedkar Abhirudhi Nigama, entrusted the work of the borewell to Suji Malleswar Swamy Bore Drillers, who drilled the borewell for the farmer.

However after a year the submersible pipes which were inserted by the Malleswar Swamy Bore Drillers, broke and the borewell was encrusted with mud and malfunctioned. Atlanta Pumps Pvt Ltd were also involved in the matter.

‘Complicated’ case

When he complained to the district consumer forum, Shimoga, it dismissed his complaint saying it was complicated and he should approach the civil court. He went in appeal to the State Commission which ruled that due to substandard pipes he had suffered a loss and the district consumer forum was not right in dismissing his case.

The Commission has ordered the district consumer forum to dispose of the matter afresh.

Insurance company

Seeta of Sirsi Taluk had gone in appeal to the Commission against the district consumer forum that had dismissed her complaint against New India Assurance Company Ltd. Karwar.

Her husband who had a policy with this firm died in 2003 and when she asked New India to transfer the policy to her name they refused on the grounds that the validity of the policy is for 15 years from the date of issuance of the policy even though it has been issued till the cancellation of the registration.

The State Commission ruled in her favour and ordered New India Assurance to transfer the policy to her name within two months of getting its order.

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