CIC asks LIC to pay Rs 1 lakh to widow
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NAGPUR: August 22, 2010: In one of the far-reaching verdicts that will bring smiles on the faces of those who are not getting answers to their queries under Right To Information (RTI) Act, the Central Information Commission (CIC), New Delhi has asked Life Insurance Corporation (LIC) of India to pay Rs 1 lakh compensation to a widow for its failure to provide information sought by her under the Act.
Incidentally, this is the highest ever compensation paid under RTI Act.
Saraswati Ranka, a resident of Parseoni, has been awarded compensation under Section 19(8) of the RTI Act as insurance behemoth failed to provide correct information to the widow causing mental agony and harassment. Tushar Mandlekar was counsel for the petitioner.
According to Mandlekar, Ranka through an application dated June 1, 2009, sought information from the LIC on three points regarding her policies. She had enquired and requested to provide all the necessary documents including the copies of the application forms, file notings and policy details of her husband Ranulal. According to her, apart from two other policies, he had paid a premium of Rs 23,724 for LIC's Bima Gold policy on March 28, 2006. However, the insurance major failed to issue any policy to Ranulal who died on June 14.
The chief information publicity officer (CPIO) of LIC in his reply of June 30 last year provided some information which failed to satisfy the appellant who went in first appeal against the order through an application.
Ranka sought attested copies of her two policies from the public authority since they have been provided only with the information pertaining to amount paid to the appellant following demise of her hubby who was insured. Her thrust, however, pertains to the third policy for which she sought information under RTI.
She contended that despite paying premium for the third policy, LIC failed to provide policy bond even though her husband had fulfilled all the obligations by paying premium and also undertaking medical tests as prescribed.
The CPIO on its part contended that no death claim could be entertained by the LIC as it was an "unconcluded contract" where policy number was never allotted. And they also returned the premium amount.
Source: TOI
The CIC in its order observed that "attempt has been made to conceal the full facts from the appellant by CPIO" causing the petitioner to suffer mental stress.
The LIC has been ordered to provide full details and also a show-cause notice was issued to them as to why a compensation of Rs 1 lakh should not be paid to the appellant.
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