Might Lead To A Scam: Delhi High Court Dismisses PIL Seeking MHA To Share Deceased Individuals' Data With LIC For Jeevan Jyoti Scheme Claims

The PIL sought directions to the LIC to provide policy documents to all the policy holders of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The petition further sought directions to the Ministry of Home Affairs (MHA) to provide information of all the deceased individuals to the LIC, so that the nominee/family members of the deceased policy holders can directly get the insurance claim of Rs. 2 lakhs under the PMJJBY.

The petitioner alleged that LIC has not been providing the policy documents to the PMJJBY's policy holders as required under Regulation 8(1) of the Insurance Regulatory and Development Authority of India (Protection of Policy Holders Interests) Regulations, 2017.

The petitioner further submitted that the Registrar General and Census Commissioner, MHA has not been sharing the database of all deceased individuals in the country with the Department of Financial Services (DFS). The petitioner contended that if such information is provided to DFS and LIC by the MHA, then DFS/LIC could determine which deceased individuals held the insurance policy.

A division bench of Chief Justice Manmohan and Justice Tushar Rao Gedela remarked that if the reliefs prayed by the petitioner were granted, it might lead to scam where benefits under the policy could be appropriated by individuals who have not applied for it.

“This Court is further of the view that if the course of action as suggested in the present writ petition is adopted, it may lead to a scam, as benefits under the policy may be appropriated by individuals who have not applied and who are not verified.”

The Court noted that the petitioner did not submit any letter written by family members or nominees of the deceased complaining about the non-issuance of policy documents to the policy holders.

It stated that the petition was based on the “presumption and assumption” that the family members were not aware that the deceased held an insurance policy under the PMJJBY and that no policy documents were sent to the policy holder.

It opined that the policy holders cannot be presumed to be illiterate or incapable of approaching the courts to seek relief.

The Court further observed that a public interest petition is normally not maintainable with respect to an insurance contract as such a contract is between the parties.

The Court thus did not find any merit in the petition and dismissed it.

Case title: Aakash Goel vs. Union of India & Ors.

Citation: 2024 LiveLaw (Del) 1259