' Petitioner's mother got herself insured from the respondent State Life Insurance Corporation of Pakistan for a sum of Rs,75,000 for 15 years against an annual premium of Rs,5,864. The last premium was paid in the year 1999. Petitioner was the nominee, the policy-holder died on 29-12- 2000 and after her death a claim was lodged which was declined by the respondent Corporation on the ground that the policy had acquired paid up value upto the extent of Rs,36,055. Petitioner moved Wafaqi Mohtasib which decided the matter in petitioner's favour vide order, dated 24-12- 2001. This order was challenged before the President of Pakistan who allowed the same and the order of the Wafaqi Mohtasib was set aside vide order, dated 3-1-2003. Hence this petition.
2. Learned counsel for the petitioner made following submissions in support of this petition:--
(i) that the petitioner death claim has wrongly been refused and in identical cases the claimants were granted relief by the respondent Corporation;
(ii) that the Wafaqi Mohtasib had correctly decided the case and the order has been set aside by the President of Pakistan for reasons not sustainable in law;
(iii) that the case of the petitioner is covered by para.8 of the Insurance Policy to which respondent Corporation is a signatory.
3. In the comments submitted by the respondent it is contended that the writ is not maintainable, that petitioner has come to this Court with unclean hands as he has not furnished particulars of Insurance Policy and he has deliberately concealed material facts. The policy in question stood paid up on 19-3-2000 in terms of Automatic Non-forfeiture option selected by the policy-holder at proposal stage after Non-payment of Premium. It was specifically contended in the written reply that "the premium due on 3-1999 was paid on 13-3-2000. The premium was placed on suspense account and the policy-holder was requested to deposit late fee of Rs,660 vide letter dated 18-3- 2000 but no response received. Resultantly the policy stood paid up on 19-3-2000 in terms of Automatic Non-forfeiture option, selected by the policy at proposal stage. The assured was reported to have died on 29-12-2000. On receipt of death intimation, necessary processing was done and claim to the extent of paid up value (Rs,30,191) was admitted with refund of premium amount (Rs,5,864) lying in suspense. Accordingly Discharge Voucher for Rs,36,055 was issued to the claimant for completion and return.
4. Learned counsel for the respondent defended respondent's action and argued that the Corporation had proceeded strictly in terms of the insurance policy and it did not violate any rule or law to warrant interference in the Constitutional jurisdiction of this Court.
5. Heard.
6. On respondent's own showing petitioner had paid the last premium on 13-3-2000. Since this premium was due in March, 1999 and was being paid late, the policy-holder was asked or to deposit Rs,660 as late fee and till the deposit of this late fee the delayed premium received was kept in the suspense account. Interestingly the notice to pay the late fee of Rs,660 was sent on 18- 3-2000 and on the very next day the policy stood paid up on 19-3-2000. The policy-holder died on 29-12-2000. There is nothing on record to indicate that the afore-referred notice for deposit of the late fee was ever received by the policy-holder and even otherwise just for a paltry sum of Rs,660, the entire claim could not have been repudiated. The respondent has acted against para.8 of the Insurance Policy and has wrongly repudiated the claim and has unjustly delayed the matter. In these circumstances this petition is accepted and A the order of respondent No,1 is set aside. Since the matter was unjustly prolonged by the respondent, petitioner is held entitled to the liquidated damages as well in terms of section 118 of the Insurance Ordinance, 2000.