Patna High Court
Atiya Subhani vs The Life Insurance Of India on 1 May, 2024
Author: A. Abhishek Reddy
Bench: A. Abhishek Reddy
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4500 of 2022
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Atiya Subhani W/o Late Dilashad Alam, Resident of Mohalla- Babooganj,
Ward No.- 2, Kali Badi, P.S.- Khagaria, District- Khagaria, At present-
Resident of Mohalla- Musafirganj, Ward No.- 9, P.S.- Buxar (Town), District-
Buxar.
... ... Petitioner/s
Versus
1. The Life Insurance of India through its Zonal Manager, L.I.C. of India East
Central Zonal Office, Jeevan Deep Building, Exhibition Road, Patna.
2. The Senior Branch Manager, L.I.C. Patna Division 1, Jeevan Deep Building,
1st Floor Exhibition Road, Patna.
3. The Claim Officer, L.I.C. Patna Division, Jeevan Deep Building 1st Floor,
Exhibition Road, Patna.
4. Aftabl Jamal, S/o Late Jamalluddin Sahil, Resident of Mohalla - Chand
Colony Phulwarisharif, P.O.- Phulwarisharif, P.S.- Phulwarisharif, District -
Patna.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Arun Kumar Gupta, Adv.
For LIC : Mr. Umesh Pd. Singh, Sr. Adv.
: Mr. Prashant Kumar, Adv.
For Respondent No. 4 : Mr. Pratik Kumar, Adv.
For the State : Mr. Abhimanyu Vatsa, Adv.
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CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL JUDGMENT
Date : 01-05-2024
Heard the learned counsel for the parties.
The present writ petition has been filed for the following
reliefs:-
"That this writ application is being
filed on behalf of the above named petitioner
for giving direction to Respondent authority to
death claim and other benefit regarding Policy
No. 829535897 of Late Dilshad Alam to the
petitioner."
Patna High Court CWJC No.4500 of 2022 dt.01-05-2024
3. It is the case of the petitioner that her husband
namely, Dilshad Alam had purchased the insurance policy with the
respondent-Life Insurance Corporation of India vide Policy No.
829535897 on 28.12.2020. That the marriage of the petitioner took
place with the said Dilshad Alam on 03.04.2021. The husband of
the petitioner died due to Covid-19 pandemic on 20.04.2021,
thereafter, the petitioner submitted an application to the respondent
herein on 07.02.2022 stating that she is the legal heir of her late
husband and requesting them to pay the death benefits under the
policy. That when the respondent-Corporation did not pay the
insurance amounts to the petitioner, she has made inquiries and
found that her husband at the time of taking the insurance policy
has nominated his brother-in-law namely, Aftabl Jalam the
respondent No. 4 (who is none other than the brother of the
petitioner herein). When the petitioner came to know that the
respondent-Corporation is trying to pay the insurance amount to
the brother-in-law of her husband respondent No. 4 herein, she has
approached this Hon'ble Court seeking a direction to the
respondents to settle her insurance claim.
4. Learned counsel appearing on behalf of the Life
Insurance Corporation of India has stated that as per the judgement
of the Hon'ble Supreme Court in the case of Sarbati Devi And
Patna High Court CWJC No.4500 of 2022 dt.01-05-2024
Another. Vs. Usha Devi reported in 1984 1 SCC 424 irrespective
of the fact as to who has been nominated at the time of taking the
policy, in case the policy holder dies, the death benefits have to
distribute as per the law of succession. Further, learned counsel
has stated that at the behest of the Court, the counsel himself has
tried to mediate between the parties and convince them to come to
an amicable settlement but the settlement could not be reached.
That the respondent No. 4 (who is none other than the brother of
the petitioner herein) and the nominee in the insurance policy is
not agreeing for paying half of the insurance amount to the
petitioner. Learned counsel has stated that the Corporation will
abide by the directions of this Court and pay the policy amounts to
whomever this Court directs.
5. Learned counsel appearing on behalf of the
respondent No. 4 has vehemently opposed the prayer sought for by
the petitioner and stated that the respondent No. 4 has been
nominated by the deceased policyholder and, therefore, it is only
the nominee who is entitled for the death benefits under the policy.
Further, learned counsel has stated that in case the petitioner has
any claim over the policy, her remedy is to approach the Civil
Court and not this Court under the Article 226 of the Constitution
of India. Learned counsel has also relied on the judgement of the
Patna High Court CWJC No.4500 of 2022 dt.01-05-2024
Hon'ble Supreme Court in the case of Sarbati Devi And Another.
Vs. Usha Devi reported in 1984 1 SCC 424 which has also been
relied on by the counsel for the Corporation.
6. This Court vide order dated 22.04.2022 has directed
the Corporation to maintain status quo with regard to the payment
and, therefore, no amounts have been disbursed till date.
7. It is pertinent to extract the relevant portion of the
judgement of the Hon'ble Supreme Court in the case of Sarbati
Devi And Another. Vs. Usha Devi reported in 1984 1 SCC 424
which reads as under;
"A mere nomination made under Section 39 of the Act
does not have the effect of conferring on the nominee any beneficial
interest in the amount payable under the life insurance policy on the
death of the assured. The nomination only indicates the hand which is
authorized to receive the amount, on the payment of which the insurer
gets a valid discharge of its liability under the policy. Under Section
39 of the policy-holder continues to hold interest in the policy during
his lifetime and the nominee acquires no sort of interest in the policy
during the lifetime of the policy-holder. Therefore, on the death of the
policy-holder the amount payable under the policy becomes part of
his estate which is governed by the law of succession applicable to
him. Such succession may be testamentary or intestate. Section 39
does not operated as a third kind of succession which can be styled as
a 'statutory testament'. A nominee cannot be treated as being
Patna High Court CWJC No.4500 of 2022 dt.01-05-2024
equivalent to an heir or legatee. The amount received under the
policy therefore, can be claimed by the heirs of the assured in
accordance with the law of succession governing them."
8. A reading of the above judgement of the Hon'ble
Supreme Court reveals that irrespective of the fact as to who is
shown as the nominee in the insurance policy, in case the policy
holder dies, the insurance amount has to be divided as per the law
of succession. In case there is any dispute with regard to the
division of shares of the parties as per their personal law, their
remedy is to approach the competent Civil Court.
9. Admittedly, in this present case, the petitioner being
the wife is entitled to a share in the insurance policy therefore, this
Court is of the opinion that the ends of justice would be met if a
direction is given to the Corporation to disburse 25% of the policy
amount to the petitioner herein and retain the 75% of the policy
amount with them to be distributed among the legal heirs, as per
their personal law. If the parties are so advised, they are free to
approach the Civil Court seeking division of the policy amount as
per their personal law and submit the same to the respondent-
Corporation for distributing the amount in accordance with the
judgement and decree granted by the Civil Court. Till such time,
the parties obtain any decree from the Civil Court, the Corporation
is directed to keep the balance 75% of the policy amount in a fixed
Patna High Court CWJC No.4500 of 2022 dt.01-05-2024
deposit. If any settlement is reached between the parties or they
obtain any decree from the Civil Court, the Corporation shall
distribute the policy amount along with the interest in accordance
with the settlement of decree.
10. With the above direction, the present writ petition
stands disposed of to the extent indicated.
(A. Abhishek Reddy, J)
Ayush/-
AFR/NAFR NAFR
CAV DATE N/A
Uploading Date 17.05.2024.
Transmission Date N/A
