LIC OF INDIA Vs. K MUTHAMMAL

JUDGEMENT

(1.) The complainant's case is that her husband during his life-time had taken three policies out of which the claims under policies bearing Nos.041622625 and 740810275 were accepted by the opposite parties and honoured. But the opposite parties repudiated the claim with regard to policy No.740812709 which was for a sum of Rs.50,000/-, on the ground that the complainant's husband had suppressed material facts regarding his health when making the proposal for the said policy and, therefore, the claim is not acceptable to them. Therefore, according to the complainant, the stand of the opposite parties is unjustified and thus there is deficiency in service and hence the claim for a direction to the opposite parties to pay a sum of Rs.50,000/- due under the said policy with interest and a sum of Rs.25,000/- as compensation towards mental agony and hardship and for costs.

(2.) The opposite parties took the stand that Policy No.740812709 was issued on 1.1.1997, the death had taken place within a year and thus it was an earlier claim and, therefore, the opposite parties, after investigation, rightly repudiated the claim. They further contended that the complainant was suffering from diabetes from the year 1992 and was taking treatment from TANCEM Dispensary. Thus the complainant's husband suppressed this fact at the time when he took his policy and since it is a matrial fact, suppression the same would render the contract void, since the contract is one based upon good faith. Therefore, according to them, it was repudiated for proper reason and the opposite parties were, therefore, justified in repudiating the claim.

(3.) The lower Forum, upheld the complainant's case and ordered the opposite parties to pay the policy amount of Rs.50,000/- within a month. Hence this appeal by the opposite party.