LIFE INSURANCE CORPORATION OF INDIA Vs. SOHAN LAL SEN
LAWS(RAJCDRC)-2006-3-2
RAJASTHAN STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Decided on March 20,2006

LIFE INSURANCE CORPORATION OF INDIA Appellant
VERSUS
Sohan Lal Sen Respondents




JUDGEMENT

- (1.)THIS appeal has been filed by the appellant under Section 15 of the Consumer Protection Act, 1986 (the Act) against order dated 28.2.1997 passed by the District Forum, Ajmer by which the complaint of the respondent was allowed in the manner that the appellant was ordered to pay Rs. 25,000 the amount of insurance policy to the respondent complainant along with other benefits with interest @ 18% from 29.6.1994.
(2.)THE necessary facts giving rise to this appeal are as follows:
That the complainant respondent had filed a complaint before the District Forum on 25.1.1995 inter alia stating that he and his wife Smt. Jamna Devi (now deceased) had taken a joint life insurance policy bearing No. 18097574 for a sum of Rs. 25,000 from the appellant. It was further stated in the complaint that on 23.3.1994 the deceased had died. Thereafter the claim was preferred by the respondent in capacity as nominee of the deceased before the appellant and that claim was repudiated by the appellant through letter dated 31.12.1994 inter alia stating that before issuance of the policy i.e., on 10.10.1993, the deceased was suffering from the disease of haematemisis with portal hypertension and spleenography for the last seven years and for that she had taken treatment from the hospital and these facts were not disclosed by the deceased at the time of filling in up the proposal form i.e., on 10.10.1993 and thus the deceased had given false statement on the ground of withholding correct information, the claim was repudiated. Thereafter the present complaint was filed by the complainant respondent. A reply was filed by the appellant Insurance Co. on 6.12.1995 and the appellant had taken the same stand which was taken by them in repudiation letter dated 31.12.1994 and it was further stated by the appellant that the deceased was suffering from the disease of haematemisis since 1987 and before the death she was got admitted in JLN Hospital, Ajmer on 3.3.1994 where she remained upto 23.3.1994 and she had died while she was admitted in the hospital and the cause of death which was assigned was the failure of circulatory as a result of portal Hypertension Haematemisis and thus it was a case of suppression of material facts about her health on the part of the deceased and the claim was rightly repudiated. Hence complaint be dismissed.

After hearing both the parties the District Forum allowed the complaint of the respondent as stated above inter alia holding that it was not a case of suppression of material facts.

(3.)AGGRIEVED from the said order this appeal has been filed by the appellant and the main contention of the learned Counsel for the appellant is that since at the time of filling in up the declaration form i.e., on 10.10.1993 and prior to that since the deceased was suffering from the disease haematemisis with portal hypertension. Therefore, the appellant had legal right to repudiate the claim of the complainant on the grounds of suppression of material facts and breach of principles of utmost good faith by the deceased and thus, no illegality has been committed by the appellant in repudiating the claim of the complainant respondent through letter dated 31.12.1994 and the learned District Forum has seriously erred in decreeing the claim of the complainant respondent. Hence, impugned order cannot be sustained and liable to be quashed and set aside.
On the other hand the learned Counsel appearing for the complainant respondent has supported the impugned order of the learned District Forum.



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