- (1.) THIS appeal arises from order dated 12th December, 2003 rendered by the learned Surat District Consumer Disputes Redressal Forum in Consumer Protection Case No. 369/1998 directing the opponent Life Insurance Corporation of India (LIC for short) to pay the insurance amount of Rs. 50,000/ - with interest @ 12% p.a. from 26.3.1997 (date of repudiation) till payment and cost quantified at Rs. 1,000/ - in favour of the complainant -widow of the insured Upanshu Gamanlal Shah.
(2.) WE have heard the learned Advocates for the parties. We have gone through the impugned order.
(3.) IT has been submitted on behalf of the opponent LIC that Clause 6 of the policy of insurance in question would be applicable in this case in view of the following dates: Date of proposal is 26.11.1993 Date of commencement of risk is 30.11.1993 Back date of commencement of risk is 28.9.1993 Date of committing suicide is 29.11.1994 Invoking Clause 6 of the policy of the insurance in question (it does not commence with non -obstante clause) it has been submitted that the suicide should be treated to have been committed within one year from the commencement of the risk on 30.11.1993. In the present case the policy of insurance recites acceptance of cheque of premium on 26.11.1993. It is true that it might have been cleared for issuance of premium receipt on 30.11.1993 which is the commencement of risk. Bearing in mind such a situation with regard to the dates submitted from the side of the opponent LIC it becomes clear that the suicide cannot be treated to have been committed within one year from the relevant date. In any event, this Commission had an occasion to consider such a situation in the case of Consumer Education and Research Society and Mrs. Nayanaben S. Amin v. Life Insurance Corporation of India, decided on 4th August, 2004 in Complaint No. 36/2002 and in view of the decision of the Hon ble National Commission in the case of LIC of India v. Vimal Kumar Mittal, 2002 2 CPJ 66, referred to therein the submission made on behalf of the opponent LIC cannot be accepted. It has been submitted that the repudiation cannot be said to be mala fide and, therefore, the rate of interest should be reduced from 12% to 9%. Bearing in mind above circumstances of the matter as also by virtue of the decision of the Apex Court in the case of Kaushnumma Begum v. New India Assurance Co. Ltd., 2001 1 SLT 300, we propose to reduce rate of interest from 12% to 9%. We, therefore, pass following order: Impugned order dated 12th December, 2003 rendered by the learned Surat District Consumer Disputes Redressal Forum in Consumer Protection Case No. 369/1998 is hereby maintained except with regard to rate of interest which is reduced from 12% to 9%. The opponent LIC, appellant herein will pay the amount to the complainant as per the modified order within six weeks from today. Office of this Commission is to return the amount of Rs. 25,000/ - stated to have been deposited by the appellant LIC of India in this Commission to the appellant LIC of India with interest, if any, by A/c payee cheque. This appeal is accordingly disposed of with no further order as to cost.;