LIC OF INDIA Vs. JYOTI SHIKHA

JUDGEMENT

(1.) THIS appeal has been filed against the order dated 18.11.2006 passed by the learned District Forum, Sri Ganganagar directing the Appellant Insurance Corporation to pay to the Complainant a sum of Rs. 2,00,000/ - with all benefits attached thereto and further to pay interest @ 9% per annum from 1.5.2005 till the date of payment along with Rs. 10,000/ - as compensation and cost of litigation.

(2.) THE Complainant and her Husband Late Shri Vishnu Bhagwan had obtained a Double Cover Joint Life Plan with profits plus accident benefits by submitting a proposal form on 13.12.2004. Unfortunately, the Husband of the Complainant died in an accident on 31.12.2004. The claim was filed with the Corporation but the payment was not made to the Complainant on the ground that before the proposal was accepted, Shri Vishnu Bhagwan had already expired on 31.12.2004 of which no information was given by the Complainant to the Corporation.

(3.) THERE is no dispute on the point that the death of the deceased occurred on 31.12.2004. The policy on record goes to show that the proposal for the policy was made on 13.12.2004 and First Premium Receipt was also issued on 31.12.2004. The learned counsel for the Appellant has submitted that the proposal form submitted to the Corporation was registered on 31.12.2004 which was reviewed on 2.1.2005 and policy was issued on 12.2.2005. According to the learned counsel, the First Premium Receipt was issued on 2.1.2005. As the Life Assured (LA) died before the acceptance of the proposal, no contract was entered into between the LA and the Corporation.