A bench of the Supreme Court (SC) of India in its judgement has asked the country's premier life insurer, the Life Insurance Corporation (LIC) of India Ltd to pay some compensation to widow of Kamal Singh for issuing wrong policy.

Late Kamal Singh had deposited Rs 2.6 million in a proposal for LIC's New Jeevan Akshay 1 policy, but mistakenly he was given New Jeevan Dhara policy. Though, he got some monthly pension under the former insurance scheme without verifying the policy he got. Usha Kumari, his widow, approached the Rajasthan consumer commission which directed the LIC to payback amount with interest after deducting some payments. Interestingly, the national commission had rejected it.

Finally when the case 'Usha Kumari vs LIC' was filed in the SC, the honorable court observed that the LIC is guilty of issuing wrong policy due to lack of due diligence in its dealings. The SC rejected the national commission's observation and asked the insurer to pay Usha Kumari balance of the premium deposited by the insured and lump sum compensation.