LIFE INSURANCE CORPORATION OF INDIA Vs. V JEEVA

JUDGEMENT

(1.) This Revision Petition is directed against the order dated December 20, 1993 of the State Commission, Tamil Nadu, in appeal upholding the order dated April 16, 1993 by the District Forum, Tirunelveli.

(2.) The husband of the Complainant had taken out a life insurance policy for Rs. 50,000/-, besides his earlier two policies of Rs. 8,000/- and Rs. 7,000/-. The claim of the policies of Rs. 8,000/- and Rs. 7,000/- was settled by the Life Insurance Corporation of India, but repudiated as to the third policy of Rs. 50,000/-. Ad mittedly, the husband of the Complainant executed a proposal form for the life insurance for the sum of Rs. 50,000/- and deposited a part payment of Rs. 1,076.80 ps. as premium on June 24,1988 and the balance of the premium payable i.e. Rs. 807.60 was deposited on October 25, 1988. But, before the policy could be issued, the husband of the Complainant died on November 1, 1986.

(3.) The first point raised before the District Forum and the State Commission as well as before us is that there was no concluded contract of insurance as the amounts received from the deceased were kept in suspense account and the proposal remained pending. There is no merit in this submission. The District Forum analysed the evidence on record, particularly the admission of D.W. 1 in his examination-in-chief that the Complainant's husband took a policy for Rs. 50,000/- and the proposal is Exhibit-B.1, that on 24.6.88 Rs. 1,076.80 ps. was paid towards premium, that on 25.10.88 the balance premium of Rs. 807.60 ps. was paid and that the receipts in respect of the same were Exhibits-B.2 and B.3. The District Forum also noticed the cross-examination of D.W.1, where he admitted that the money (Rs. 807.60) is entered as 'balance of premium'.