Amarjeet Chaudhary and K.K. Srivastava, JJ.
1. This writ petition has been filed by Sukhdip Singh, minor through his guardian Smt. Ranjit Kaur for the issuance of a direction to the respondents to release the policy amount to the petitioner alongwith interest. The said directions have been sought for the reason that the father of petitioner late Shri Darshan Singh had got Life Insurance Policy in his name and nominated the petitioner as his nominee. Darshan Singh, the policy holder died in a road accident on 12.3.1994 and First Information Report was lodged on 12.3.1994 at Police Station, Sadar, Amritsar. It has been averred that the petitioner had approached the respondents and served notice also for the release of the policy amount but despite that, the policy amount has not been released to the petitioner to which the petitioner, being nominee is entitled to. The mother of the petitioner had furnished the requisite documents. She was advised by communication, dated 14.11.1995, copy Annexure P3, to contact the Branch Officer, Unit No. 1, Amritsar for further necessary action regarding payment of claim. On 17.11.1995, the respondents informed the mother of the petitioner, Ranjit Kaur, who is his natural guardian to obtain succession certificate and produce the same. The petitioner also served legal notice and the respondents vide their letter dated 16.3.1996 replied that minor cannot give valid discharge regarding the claim of Darshan Singh and Ranjit Kaur is not the real mother of the minor. The guardian Court, Amritsar vide order dated 9.3.1995 had appointed Ranjit Kaur as guardian of minors Amandeep Kaur and Sukhdev Singh and she was allowed to withdraw the amount of ex-gratia grant, G.P. Fund and other dues from Punjab Government on behalf of minors but no order was made by the Court concerned under the above policy. The petitioner has approached this Court for the issuance of necessary directions.
2. On notice of motion, the respondents have filed written statement in which it has admitted that Shri Darshan Singh, father of the petitioner, had insured himself for Rs. 1,00,000/- on 31.3.1989 and appointed his son Shri Sukhdeep Singh, aged 6 1/2 years as his nominee without authorising anyone to receive money secured by the policy in the event of death during the minority of the nominee. Smt. Ranjit Kaur was appointed as guardian and has been allowed to withdraw the amount of G.P. Fund, leave encashment and other dues from the Education Department on furnishing indemnity bond of Rs. two lacs. The claimant was advised to obtain extended guardianship certificate so as to enable the guardian to withdraw the amount of insurance or produce succession certificate to disburse the amount failing which the Insurance amount was payable to all the legal heirs.
3. We have considered the submission of learned counsel for the parties and perused the paper book.
4. We have gone through the relevant part of para 8.4 of the L.I.C. of India Manual for Policy Servicing Department Part-I which reads as under;
'8.4 Where the Nominee or an Assignee is a Minor :- Where the Nominee is a minor, as provided by the Insurance Amendment Act, 1950, the Life Assured has the right to appoint any person as the appointee to receive the policy money secured by the policy in the event of the Assured's death during the minority of the Nominee. Where a Nominee is a minor and no appointment of Appointee is made, the money secured by the policy in the event of the secured's death during the minority of the Nominee, should not be paid to the Guardian, appointed or natural, but it should be paid only to the legal heirs of the Life Assured.'
5. Since the provisions bar the payment to any such person whether he is natural or appointed guardian it was incumbent upon the L.I.C. to have deposited the entire amount in some Nationalised Bank in fixed deposit in the name of minor till the period, he attains majority. It is settled law that the interest of minor is always to be protected and it is for the Court to see that there is no exploitation or the amount is not misused. It is also well settled that the minor should not be deprived of his valuable rights. In this view of the matter, a direction is issued to the respondents to release the policy amount and deposit the same in the name of minor in some Nationalised Bank in fixed deposit within one month from the date of receipt of Copy of this order. The insured died on 12.3.1994 and the claim should have been settled within one year thereof. Therefore, the petitioner shall get interest at the rate of 12% per annum from one year.
5. Writ petition is allowed in the manner indicated above. The parties are left to bear their own costs.