Decided on June 16,2008

Minal Sunil Patil Respondents


- (1.) THIS appeal is directed by the original O.P. LIC of India against the order passed by the District Forum, South Mumbai in Complaint No. 262 of 2005, dated 15.6.2007. By this judgment and award, the Forum below directed the LIC to reimburse amount of Rs. 15 lakh towards the two insurance policies purchased by the deceased and to pay interest at the rate of 9% from the date of repudiation.
(2.) FACTS to the extent material may be stated as under.
(3.) THE deceased Mr. Sunil Vasant Patil had taken two insurance policies from LIC covering his risk for life. Those two policies were Anmol Jeevan (Without Profit). He paid premium of the same. Proposal was accepted by the O.P. and O.P. issued premium receipt dated 31.5.2003. The policies were issued covering the risk from 7.5.2003. Out of two policies, policy No. 891380865 was for Rs. 10 lacs and second policy bearing No. 891380866 was for Rs. 5 lacs. Both the policies were to be in force for fifteen years. It seems that said Sunil Patilstarted getting back pain after a few months from the purchase of the policy. He had gone to Lilavati Hospital where biopsy was done and on 16.4.2004 after abouta year from the proposal, he was diagnosed as sufferingfrombone cancer. He took treatment at Tata Memorial Hospital. But ultimately on 28.5.2004, he committed suicide in hospital's toilet. The widow of the deceased, the complainant filed claim petitions with the LIC in respect of both the policies. The LIC repudiated the claim on the ground that deceased had committed suicide within a year from the date of issuance of policy and policy became null and void. Hence, widow of the deceased filed consumer complaint in the Forum below and claimed Rs. 15 lakh from the LIC. The LIC filed written statement and contested the consumer complaint. It pleaded that it received income proof from deceased Sunil Paul on 28.5.2003 after considering the proposal form. Then proposal was accepted by the O.P. oh 31.5.2003. It had issued two policies wherein it clearly mentioned that date of commencement of risk would be 31.5.2003. Life assured was issued premium receipt dated 31.5.2003. Deceased had committed suicide in the hospital as was clear from police papers and as per condition No. 7, suicide clause was applicable upto year from the date of commencement of risk and date of commencement of risk for both the policies was 31.5.2003 and within year i.e. on 28.5.2004, the deceased had committed suicide and, therefore, the policies were treated null and void in terms of Clause No. 7 and they had repudiated the claim by letter dated 29.9.2004. Insurance Ombudsman also rejected the claim of the complainant vide letter dated 26.7.2005. Hence, LIC pleaded that complaint should be dismissed with cost.;

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