New Delhi, October 2024 — A consumer court has ordered the Life Insurance Corporation (LIC) and the Municipal Corporation of Delhi (MCD) to jointly pay ₹40,000 in compensation to the family of a deceased sweeper. The court found both entities liable for undue delays in processing and releasing the insurance claim after the sweeper’s death.
The case involved the death of an MCD-employed sweeper who had an insurance policy with LIC. Following his passing, the family applied for the insurance payout, but faced significant delays from both the LIC and MCD, which led to financial hardship. The family then filed a complaint with the consumer court, alleging negligence and deficiency in services.
In its ruling, the court stated that both the LIC and MCD failed to process the claim within a reasonable timeframe, causing unnecessary distress to the deceased’s kin. The court ordered the two organizations to compensate the family for the mental agony and financial strain they endured due to the prolonged delay.
The judgment highlights the responsibility of government bodies and insurance companies to ensure timely disbursement of benefits to beneficiaries, especially in cases involving low-income workers who rely on such funds for survival.
The court also issued a warning that public service organizations must avoid bureaucratic inefficiencies that lead to delays in processing rightful claims. The ruling is seen as a small yet significant victory for workers’ rights, particularly for those employed in low-wage and vulnerable sectors like sanitation.
Both the LIC and MCD have yet to comment on the court’s decision, but the family of the deceased sweeper has expressed relief at the judgment, stating that the compensation will help them navigate the financial difficulties they have faced since the worker’s death.