Surprised That LIC Chose To Challenge a ‘Very Petty Amount’: Allahabad High Court Criticises LIC After Insurance Company Challenges INR 74,508 Lok Adalat Award for Refund of Premiums to Policyholder

Surprised That LIC Chose To Challenge a ‘Very Petty Amount’: Allahabad High Court Criticises LIC After Insurance Company Challenges INR 74,508 Lok Adalat Award for Refund of Premiums to Policyholder

Recently, the Allahabad High Court criticised the Life Insurance Corporation of India (LIC) for filing a written petition challenging an award (for refund of premiums) of INR 74,508 passed by the Permanent Lok Adalat, Aligarh, in favour of a policyholder. The court described the petition as “surprising” as LIC chose to challenge a “very petty amount”. The Allahabad High Court bench of Justice Prakash Padia directed a Senior Officer of LIC to file an affidavit explaining why the award should not be paid to the policyholder (Respondent No 2). The Single Judge observed that taking into account the legal fees incurred in filing the petition, the cost of pursuing the present writ petition appeared to exceed the amount awarded by the Lok Adalat. According to the case details, LIC moved the court with the instant writ petition against an order of the Permanent Lok Adalat, which directed the insurance company to refund the deposited amount, along with 7 per cent interest, and INR 5,000 in litigation expenses to Megh Shyam Sharma, the policyholder. ‘She Herself Invited Trouble’ Remark: Supreme Court Raises Objection to Allahabad High Court’s Observation That Rape Victim Invited Trouble, Cautions Judges Against Inappropriate Observations.

HC Describes LIC’s Petition as ‘Surprising’

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