L I C OF INDIA Vs. KUNCHI AICHU

JUDGEMENT

(1.) THIS appeal presents a virgin question in Insurance Law: the scope and amplications of a term in a proposal for the policy. The court below decreed the plaintiffs suit. The Life Insurance Corporation felt aggrieved by it. It challenges the conclusion and subsidiary findings as contained in the judgment adverse to it.

(2.) THE factual background has to be furnished first before we discuss the nice and enticing question of law.

(3.) ACCORDING to the Life Insurance Corporation, the insured had been engaged in unceasing smuggling activities. Smuggling activities come within a hazardous occupation. When the insured had active involvement and desire to have continued involvement in smuggling activities, the suppression of that information in the answer to Query No. 10, was a wanton violation of the good faith, and consequently the insurer is entitled to repudiate the claim. Such was the defence.