HINDUSTHAN IDEAL INSURANCE COMPANY LIMITED Vs. B JAYALAKSHMAMMA

JUDGEMENT

(1.) In this appeal by the insurer, the following facts need be mentioned.

(2.) The respondents husband B. Venkatarama Naidu of Chelepalli had insured his life with the appellant-company who issued policy No, 10765 on 4-2-1949 marked as Exhibit A-1 under which the risk was to take effect from 20-12-1948. The premium was payable in half-yearly installments of Rs. 302-8-0 and the second installment was due to be paid on 20-6-1949. The assured did not pay this installment within the period of grace which expired on 20-7-1949. On 30-7-1949 he paid Rs. 302-8-0 in the District Co-operative Central Bank Ltd., Chittoor, who were the bankers of the insurer. The appellant passed a receipt therefor on 1-8-1949, but as this installment of the premium was paid out of time, the insurance company wrote Exhibit A-4 to the assured that the amount was credited to the anamath account and reiterated the request to send interest and the form of health certificate in order to enable them to take necessary action in respect of the lapsed policy. Exhibit B-6 is yet another letter sent by the insurer. In this the insurance company wrote: "Immediately after seeing this letter, if you send a sum of Rs. 3.00 towards interest along with the health certificate sent herewith duly filled in signed and also attested by witnesses, we can take proper action.

(3.) The assured in compliance therewith filled in Exhibit B-4, the declaration of good health and handed it over to P. W. 2 on 13-11-1949 along with a sum of Rs. 5.00 towards interest. P. W. 2 paid this sum into the Chittoor District Co-operative Central Bank Ltd., on 15-11-1919 and forwarded the Challan therefor and Exhibit B-4 to the insurance Company on the same date. It is not denied by the appellant that on 19-11-1949 the company condoned the delay and admitted the assured as a policy-holder by adjusting the amounts from the suspense account to the policy account and thus revived the policy, and also sent an intimation of this fact to the assured. On the same day. Exhibit A-14 the premium notice was also sent to the address of the assured stating that the nest premium was due in December, 1949. The company has also mentioned in Exhibit A-12, which is a list of premiums due for the month of December, 1949, the name of Venkatarama Naidu as one of the policy-holders from whom the premium was due and the attention of P. W. 2 was invited for immediate compliance. Meanwhile the respondents husband was stabbed at 8.00 a. m., at Chelepalli on 15-11-1949 & died in the Government Head-quarters Hospital at Chittoor the same day at 11.00 p. m., having been brought there for treatment. Later on when the notice Exhibit A-6 was issued on behalf of the plaintiff who was the nominee of her husband under Section 39 of the Insurance Act, the insurer sent the reply Exhibit A-7 which is extracted hereunder; "We acknowledge receipt of your registered letter of the 17th instant and regret to note that the above gentleman was murdered. The policy has been under lapse with effect from 20-6-1949 and it was not revived till the day of his death. As the policy had thus been under lapse on the date of the partys death, we regret to say that no claim, can be sustained on the policy. "Thereupon the respondent filed the suit and against the decree in that suit, the insurer has come on appeal.