SANTI DEVI Vs. LIFE INSURANCE CORPORATION

JUDGEMENT

(1.) THIS appeal arises from a dismissal of an action started on a motion by the widow on the death of her husband for recovery of a sum under a contract of life insurance.

(2.) RAMA Abatar Agarwala, the deceased husband of the appellant, submitted a proposal for life insurance through the local agent of the Life Insurance Corporation of India, Rourkela. Along with the proposal were submitted the report of the doctor and the report of the agent. Rama Abatar also deposited Rs. 225.45. A receipt was granted therefor by the branch office and the branch manager, it is alleged, intimated that the proposal would be accepted and policy issued within a short while. On December 1/2, 1967, the Corporation asked Rama Abatar to submit a further medical report from another authorised doctor of the Corporation. Examination was done on December 14, 1967, and the report was submitted to to the defendant -respondent on December 19, 1967. The plaintiff -appellant has averred that, while accepting the second report, the local branch manager and the assistant branch manager at Rourkela assured that a policy would be issued after receipt of the medical report by the divisional office at Cuttack. They also intimated that all the necessary formalities had been complied with and a decision to accept the proposal had already been taken. The plaintiff has further averred that on December 22, 1967,Rama Abatar learnt from the branch office at Rourkela that the amount paid by him towards premium and the proposal had been accepted. On December 24, 1967, around 9 p.m. Rama Abatar met with his death in an accident. His widow, the appellant, intimated the Corporation about the fact of death of Rama Abatar and on February 21, 1968, the Corporation wanted certain information which were furnished on March 6, 1968. By their letter dated May 2 and 7, 1968, the Corporation despatched certain forms to her with directions for compliance. The appellant acted accordingly. Some time later the Corporation refuted the claim on the ground that no concluded contract had come into existence between the Corporation and the deceased.

(3.) ON the pleadings, the trial judge framed three issues, the important of them being : ' Whether there has been acceptance of the proposal of the insurance in question and the contract has been completed.'