LIC OF INDIA Vs. DULI DEVI

JUDGEMENT

(1.) THIS appeal arises out of order dated 24.11.2006 passed by the District Consumer Forum (DCF), Karauli whereby the Appellants were directed to pay to the Complainant the insured amount with bonus with interest @ 9% per annum apart from Rs. 2,000 as cost of litigation.

(2.) THE Complainant's husband late Shri Abhay Singh had taken a life policy for Rs. 1,00,000 by submitting a proposal form on 27.8.1996 with half -yearly premium. The Life Assured (LA) died on 17.9.2005. It so happened that the premium was not paid since February, 2002 with the result the policy got lapsed. It was revived by submitting declaration of good health on 3.8.2004 wherein the LA claimed himself to be healthy. He while answering the querry A(7) whether he had suffered from any disease for which treatment for more than one week was taken, he answered in negative. Whether he underwent any surgery, he denied this fact.

(3.) THE documents on record go to show that before submitting declaration of good health, the insured had undergone surgery for brain tumour in SMS Hospital, Jaipur. He was admitted in the Hospital on 6.5.2004 and was discharged on 17.5.2004. All these facts go to show that before revival of policy, the deceased was suffering from a serious disease for which surgery was done but he deliberately suppressed this fact while filling up the statement of good health. The entire amount could not have been ordered to be paid to the Complainant. The learned Counsel for the Appellant submitted that the. Insurance Corporation is ready to pay the paid -up value which comes to Rs. 41,800. In our view, the appeal deserves to be accepted.