LIFE INSURANCE CORPORATION OF INDIA Vs. B.RAHUL REDDY VISAKHAPATNAM

JUDGEMENT

(1.) This is an appeal filed by the opposite party against which the Forum passed an order imposing liability.

(2.) The facts that led to filing this appeal are briefly as follows:

(3.) The complainants are the minor children of the deceased Smt.Basa Rajeswari Reddy W/o.late B.S.N.Reddy. The insured, Smt.Rajeswari Reddy, had taken a policy with opposite party for an amount of Rs.1,00,000/- under policy bearing No.69315435 together with accrued benefits and the premium amounts were paid from to time and the policy was renewed and revived and as such the policy was in force. The insured died on 19-11-2002 and the complainants lodged a claim with the opposite party but the opposite party repudiated the claim on the ground of suppression of material facts at the time of revival of the policy. The opposite party referred the claim to Insurance Ombudsman for its intervention but the Ombudsman did not consider the claim. It is the case of the complainants that the cause of death has no connection and the proximate cause of death is unforeseen and as such the opposite party cannot escape his liability. Hence the complainants approached the District Forum for a direction to the opposite party to pay Rs.1,00,000/- together with accrued benefits, Rs.25,000/- towards mental agony, interest and costs.