- (1.) THIS appeal is directed against the order dated 26.3.2010 of District Consumer Disputes Redressal Forum, Raigarh (hereinafter called 'District Forum' for short) in Complaint Case No. 167/2009, whereby the appellant Life Insurance Corporation of Indio, has been directed to pay an amount of Rs. 2,00,000 to the nominee of the deceased insured and also to pay Rs.3,000 as compensation for mental agony and Rs. 2,000 as cost of litigation.
(2.) IT is not in dispute that Bhagatram Patel, who was an employee of Electricity Board, purchased a life insurance policy from the appellant/Life Insurance Corporation of India for an insurance cover of Rs. 2,00,000 on 3.3.2006. He died on 8.6.2006 on account of heart failure, then nominee of the deceased insured preferred a claim before Life Insurance Corporation of India, in respect of policy of Rs. 2,00,000 for the life of the insured. The claim was investigated by the Life Insurance Corporation of India and was repudiated on the ground that deceased was guilty of concealing material fact at the time of making proposal for said insurance policy, the claim in respect of two other policies, which were purchased by the deceased insured in the year 1999 and 2000 was made, but the payment in respect of questioned policy, was denied. Then, respondent/complainant filed a complaint before the District Forum, which was also contested by the appellant/Life Insurance Corporation of India on the same defence that the deceased insured, was suffering from jaundice, anaemia and weakness for a long time before taking the insurance policy. He remained on leave for long durations on account of the aforeaid diseases in the year 2003, 2004 and 2005. But, neither the fact of Sufferance of diseases was disclosed by him in the proposal form for insurance, nor anything was mentioned in respect of being on medical leave for long durations. It was averred by Life Insurance Corporation of India that deceased insured was guilty of suppression of material informationintheproposal form and, therefore, the contract of insurance was not binding upon the Life Insurance Corporation of India and it committed no deficiency in service in denying the payment of the sum assured.
(3.) LEARNED District Forum, after having considered the material placed before it by both parties, disagreed with the defence taken by the Life Insurance Corporation of India and allowed the complaint. We have heard arguments of both parties and perused the record of the District Forum.;