L I C OF INDIA Vs. SAVITA RATHORIA

JUDGEMENT

(1.) THIS appeal is against the order dated 7.2.2006 passed by the learned District Forum, Bhilwara whereby the Appellant has been directed to pay to the Complainant the assured sum of Rs. 1,00,000 and benefits due under policy along with interest @ 9% per annum from the date of repudiation of the claim till the date of payment as well as a sum of Rs. 1,000 towards litigation expenses.

(2.) LATE Shri Prakash Chand Rathoria, Husband of the Complainant obtained a life policy for a sum of Rs. 1,00,000 by submitting a proposal dated 2.10.2001 wherein he claimed himself healthy. The Life Assured (LA) died on 9.10.2003. On claim being filed by the Complainant, the Appellant Corporation enquired into the facts and circumstances surrounding the death of the LA. The inquiry revealed that LA was admitted in M.G. Hospital at Bhilwara on 7.10.2003 and was diagnosed to be suffering from IHD, hypertension and infarct in right frontle and left occipitle lobe cerebral vascular accident in November, 2002. The LA was discharged on 8.10.2003 and thereafter admitted in Maharana Bhupal Government Hospital at Udaipur. The history as revealed by the wife of the LA was recorded in Bed Head Ticket (BHT) which shows that LA had an accident five years back and was operated upon and a rod was put in right thigh. The LA had fallen four and half years back resulting in fracture of the hip. He was alcoholic for last 6 -7 years, addicted to Bhang for last 7 -8 years and a cigarette smoker. The claim was repudiated by the Insurance Corporation on the ground that the above facts were within the knowledge of the LA but he chose to give false and incorrect information while replying to the querries in the proposal form. The facts suppressed were material and if known to the Insurance Coroporation, the policy would not have been issued. By this suppression, the under -writing of the insurance by the Corporation was adversely affected.

(3.) THE learned District Forum did not agree with the pleas raised by the Appellant, thus allowed the complaint as indicated above. Feeling aggrieved, this appeal has been filed by the Insurance Corporation.