MADHUMITA SARKAR Vs. ORIENTAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) The admitted facts of the case briefly stated are as follows. Chinmoy Sarkar, aged about 43 years, took out a Janata Personal Accident Insurance Policy, for a sum of Rs. 10 lakhs, for the period between 31st March, 1998 and 30th March, 2010. His wife Srimati Madhumita Sarkar was appointed nominee. Chinmoy Sarkar died in a car accident on 25th June, 2003 leaving him surviving his widow Shrimati Madhumita Sarkar and two minor daughters: Antarlina Sarkar born on 4th October, 1996 and Somrupa Sarkar born on 6th August, 2001. On 30th June, 2003 the respondent/insurance company was duly intimated about the aforesaid death. On 29th July, 2003 by a letter she requested the insurance company to arrange for payment of the sum assured.

(2.) On 1st August, 2003 the insurer purported to write a letter addressed to the deceased Chinmoy Sarkar that as per the direction of the Head Office vide their letter dated 29th August, 2002 all the Janata Personal Accident policies for a sum above Rs. 1,00,000/- issued prior to 1st May, 1999 had been cancelled with effect from 19th September, 2002. It was alleged that the deceased had already been informed about the same. Should the deceased however have not received such information he was once again being told that he should claim refund of the proportionate premium. It would only be proper to notice the contents of the letter dated 1st August, 2003 in extenso : -

(3.) By a letter dated 1st September, 2003 also addressed to the deceased the insurer purported to forward a cheque for a sum of Rs.1,875/- presumably on account of refund of the premium which naturally could not have been accepted because the recipient was already dead. The payment of the sum assured was in the circumstances refused by a letter dated 18th November, 2003 on the ground that the policy had already been cancelled on 19th September, 2002.