LIFE INSURANCE CORPN OF INDIA A P Vs. SHRI BHAVANAM SRINIVAS REDDY

JUDGEMENT

(1.) - The Life Insurance Corporation of India, who was the respondent (opposite party) in a Complaint Petition No. C.D. 3 of 1989 on the file of the State Commission, Andhra Pradesh is the appellant before us. The appeal is against the order dated April 20, 1990 passed by the State Commission rejecting the preliminary objections raised on behalf of the opposite party that the provision of facilities in connection with insurance does not fall within the definition of "service" and hence the Redressal Forums constituted under the Consumer Protection Act have no jurisdiction to adjudicate upon a dispute arising out of a policy of insurance. The Insurance Corporation had raised a further contention also before the State Commission that since the Corporation had in exercise of the powers vested in it under the contract of insurance, repudiated the contract of insurance on the ground that there had been suppression of the material facts by the insurer at the time of taking the policy, the remedy, if any, for the insurer lies only in his approaching the ordinary Civil Court and no relief can be granted under the Consumer Protection Act. These contentions were overruled by the State Commission by a well considered order wherein all the relevant aspects have been fully discussed.

(2.) Notwithstanding, the earnest efforts made by the learned Advocate appearing on behalf of the appellant to persuade us to reach a contrary finding on the preliminary point of jurisdiction, we do not see any valid ground whatever for differing from the conclusion recorded by the State Commission.

(3.) The first point of objection raised by the Insurance Company before the State Commission and reiterated before us namely is that no dispute arising out of a contract of insurance can be made subject matter of adjudication under the Consumer Protection Act. This contention cannot be sustained in view of the decision of this Commission dated July 28,1989 in Shri Umedilal Aggarwal v. United India Assurance Company Ltd. F.A. Nos. 3 and 4 of 1989 (Reported in I (1991) CPJ 3 (NC), wherein we have held as follows :-