Hemant Gupta, J. - (1.) The challenge in the present writ petition is to the award dated 24.2.2007, Annexure P22, passed by the Permanent Lok Adalat, Hisar, directing payment of sum assured, i.e., Rs. 1,00,000 along with interest at the rate of 10 per cent per annum from the date of death of assured till payment.
(2.) Dalip Singh, husband of respondent No. 2 (hereinafter referred to as 'the assured') submitted a proposal for insurance for Rs. 1,00,000 on his life on 14.9.2002. The assured made declaration regarding his state of health which was signed by him after admitting all answers to the questions in the proposal to have been recorded correctly. A declaration was also made that all the answers have been given by him after fully understanding and all the answers are true and complete in all particulars and he has not withheld any information. It was also agreed by him that the statements made in the proposal form and declaration shall be basis of the contract of assurance and if any untrue averments are contained therein, the contract of assurance shall be absolutely null and void. One of the declarations which was given by the assured was that he has not consulted any medical practitioner during last five years for any ailment requiring treatment for more than a week and that he has never been admitted to any hospital or nursing home for general check-up, observation, treatment, operation and that he has not absented from place of work on the ground of health during the last five years. The assured has also given answers in negative to the questions that the assured was not suffering from or have ever suffered from ailments pertaining to liver, stomach, heart, lungs, kidney, brain or nervous system. A duly filled in proposal form has been appended as Annexure P1 with the writ petition. The said declaration was accepted and insurance policy was issued on 19.9.2002. Clause 5 of the conditions and privileges of the insurance policy provides for forfeiture of policy in certain events. The said clause reads as under: "(5) Forfeiture in certain events: In case the premiums shall not be duly paid or in case any condition herein contained or endorsed herein shall be contravened or in case it is found that any untrue or incorrect statement is contained in the proposal, personal statement, declaration and connected documents or any material information is withheld, then and in every such case but subject to the provisions of section 45 of the Insurance Act, 1938, wherever applicable, this policy shall be void and all claims to any benefit in virtue hereof shall cease and determine and all moneys that have been paid in consequence hereof shall belong to the Corporation excepting always in so far as relief is provided in terms of the privileges herein contained or may be lawfully granted by the Corporation."
(3.) The assured died on 16.11.2004, i.e., after two years of the issuance of insurance policy. A claim for insurance amount was lodged with the petitioner disclosing the cause of death as heart attack. Since, it was an early claim, the matter was enquired into by the petitioner and it was found that answers to the questions given by the life assured in the proposal form were false and were given with a view to influence the decision of the Corporation in accepting the proposal for insurance and that these answers were very material for the purpose of assessment of the risk. It was found that the life assured had suffered from dilated cardiomyopathy for which he had taken treatment from the hospital and was on medical leave at the time of submitting the proposal for insurance on 14.9.2002. In fact, the assured had availed medical leave from 19.8.2002 to 18.9.2002 and remained hospitalised from 1.9.2002 to 3.9.2002. Such facts were not disclosed in the proposal form. The claim arising out of the policy raised by the assured was repudiated on the ground of deliberate misstatement and withholding of material statement regarding health of the life assured at the time of submitting proposal for insurance.;