LIFE INSURANCE CORPORATION OF INDIA Vs. KEWALANAND

JUDGEMENT

(1.) Life Insurance Corporation of India has preferred this appeal against the order dated 17.9.1992 passed by District Forum (1), Lucknow in Complaint Case No.535/90 in Kewalanand V/s. Life Insurance Corporation of India.

(2.) This appeal was heard finally on 6.3.1998 and the orders were reserved.

(3.) Learned Counsel Mr. Arjun Bhargava for the appellant and Sri Rajesh Chadha, learned Counsel for the respondent were present and their arguments were heard on that day. The case in brief is that the respondent Mr. Kewalanand took a policy of Life Insurance bearing No.46218361 on his own life for a sum of Rs.25,000/- under Table and term life 24-15 with the date of commencement of 17.1.1980 on an annual premium payable Rs.1,931.30. This premium also includes Rs.25/- only towards coverage of risk for accident benefit and permanent disability benefit subject to the condition of the insurance policy. While he applied for a loan through his letter dated 14.3.1987, received in the office of the Life Insurance Corporation of India on 21.3.1987, the respondent-complainant informed the appellant's office that he had met with an accident on 1.3.1997 at Firozabad and was lying in Mool Chand Hospital at New Delhi and again vide his letter dated 22.6.1987, received by the appellants on 1.7.1987 from the respondent-complainant, informing that his right leg was amputated at Agra on 5.8.1987 and claimed the accident and disability benefit. Though according to the terms of the policy the Insurance Company has paid the amount on due dates alongwith dividend but repudiated the claim of the benefit of accident policy and disability benefit vide letter dated 15th April, 1988 on the ground that since his right leg had been amputated above the knee and the left leg had not suffered any disability it would not be possible by the Life Insurance Corporation to consider grant of disability benefit under his policy.