LIFE INSURANCE CORPN OF INDIA Vs. DHIAN KAUR

JUDGEMENT

(1.) The short question involved in this appeal is as to whether death of the insured Mohan Singh on account of jaundice was further on account of continuous alcohol intake. Mohan Singh had taken Life Insurance Policy for a sum of Rs.40,000/- on February 24, 1992. He has died by August 8,1994 that his widow Dhian Kaur lodged claim of the insured amount. Life Insurance Corporation having repudiated the claim. District Forum was approached. The version of the Corporation is as stated above that the insured had concealed material particulars about his health in the Proposal Form for obtaining the policy. In fact he was in the habit of taking liquor and it was on that account that he suffered jaundice and ultimately died. After getting evidence on affidavits and documents. District Forum allowed the complaint vide order dated December 24,1996 directing the Corporation to pay a sum of Rs.40,000/- with 18% per annum interest with effect from March 12, 1996 till payment. A sum of Rs.1,000/- towards costs of litigation was also allowed. This order is under challenge in this appeal by the Life Insurance Corporation.

(2.) Learned Counsel for the appellant has argued that the repudiation in this case was bona fide made on material collected and the District Forum was not justified in granting the insured amount. We have considered this argument and have also gone through the record. Annexure-C filed alongwith the complaint is the repudiation letter dated November 15,1994. It refers to the answer given to the question given in the Proposal Form in negative where insured was asked if he used to have or ever used alcoholic drinks or any other drugs. The material collected by the Insurance Corporation was a certificate from C. M. C. and Hospital, Ludhiana where Mohan Singh is reported to have died on August 8,1994. In the history of the illness recorded, it was mentioned "mr. Mohan Singh is a chronic alcoholic for 25 years, takes -1 peg of whisky every day --". It is from the above history recorded that Corporation took up the stand that the jaundice suffered as mentioned in this report was on account of regularly taking alcohol in the quantity referred to above. No material was collected by the Corporation as to whether Mohan Singh had earlier suffered any illness on account of alcohol or any treatment taken. Simply recording in the history of taking -1 peg whisky per se would not be sufficient to come to the conclusion that he was chronic alcoholic. In the absence of any other expert opinion on the subject that jaundice disease was on that account, it is not possible to hold that death was on account of intake of alcohol. It may be observed that there may be various causes for suffering jaundice. An excess continuous alcohol may be one of them, but there has to be specific material to indicate that in a particular case the liver was damaged on that account or that jaundice was on that account. In the absence of any such material referred to above, the Corporation arbitrarily repudiated the claim. The District Forum was fully justified in holding deficiency on the part of the Corporation, more so when more than two years passed after the policy was taken that the insured had died.

(3.) Finding no merits in the appeal, the same is dismissed with no order as to costs. The order of the District Forum is affirmed.