M.S. Sanklecha JUDGMENT
M.S. Sanklecha, J.
1. This Petition under Article 226 of the Constitution of India, seeks a writ of mandamus to Respondent No. 1- Life Insurance Corporation of India (LIC), directing it to honour the LIC Policy (the said Policy) issued to late Ms. Bharati Bheda. The late Ms. Bheda, the assured had during her life time nominated the Petitioner as the beneficiary of the said policy. Therefore, in terms of the record of the LIC, it be directed to make over the amounts due including interest thereon under the said policy to the Petitioner as the nominee of the assured i.e. the late Ms. Bharti Bheda.
2. This Petition came up for consideration on 15th March, 2019 at which time, we passed the following order:-
"1. Heard the learned Counsel for the petitioner and the learned Counsel appearing for the first respondent.
2. Considering the limited controversy involved in this petition, the same deserves to be disposed of finally at the stage of admission. For that purpose, the petition shall be listed High on Board on 25th March, 2019.
3. The advocates appearing for the respondents waives service.
4. We make it clear that if the first respondent is willing to pay the amount payable under the Policy to the petitioner, it is always open for the first respondent to pay the amount to the petitioner during the pendency of this petition.
5. At this stage, the learned Counsel appearing for the first respondent on instructions from Mr. Dilip Shirbhate, Mr. Sri. Narayanan and Mrs. Kaur of LIC of India, states that the first respondent will pay the amount covered by the Policy to the petitioner within a period of one week from today. We accept the said statement."
3. Consequent to the above, on 28th March, 2019 when this Petition came up for consideration, we were informed by the Counsel for the Respondent No. 1-LIC that it had in terms of its statement made on 15th March, 2019 paid the amount of Rs. 45.43 lakhs (inclusive of interest) after deduction of tax at source under the said policy to the Petitioner. On the aforesaid facts being pointed out, we thought that the grievance of the Petitioner stood resolved.
4. However, Mr. Khandeparkar, learned Counsel appearing for the Petitioner states that the interest has not been paid fully on the amount due under the said policy. Thus, leading to a loss to the estate of the assured, the late Ms. Bheda. It was pointed out that interest has been paid only w.e.f. 2nd December, 2018 up to 21st March, 2019. Thus, there has been a short payment of interest on account of late payment of the amounts due under the said policy. In support, our attention was invited to the Insurance Regulatory Development Authority of India (Protection of Policyholders' Interest) Regulations, 2017 (Regulations) which mandates the manner and the time frame within which a claim under the Insurance Policy has to be dealt with/disposed of by the Insurer such as Respondent No. 1-LIC. It also provides for interest payable in case there is any delay in making the payment to the nominee of the insurance policies issued by the Insurer.
5. In particular, our attention is invited to Regulation 14 of the said Regulation which reads as under:-
"14:- Claims Procedure in respect of a Life Insurance Policy
(1) A life insurer, upon receiving a death claim, shall process the claim without delay. Any queries or requirement of additional documents, shall be raised all together and not in a piece-meal manner, within a period of 15 days of the receipt of the claim.
(2) (i) A death claim under a life insurance policy shall be paid or be rejected or repudiated giving all the relevant reasons, within 30 days from the date of receipt of al........