LIC OF INDIA Vs. MERCY MASIH

JUDGEMENT

(1.) THE order passed by the District Forum, Durg (hereinafter called "Insurance Corporation" for short), in Complaint Case No. 299/2007 on 22.11.2008, is subject matter of challenge in this appeal by Life Insurance Corporation of India (hereinafter called "Insurance Corporation" for short), who has been directed to pay Rs. l,00,000 as per terms of the policy along with compensation of Rs. 5,000 and cost of litigation Rs. 2,000 within a period of two months otherwise the amount would be payable along with interest @ 7% p.a.

(2.) IT is not in dispute that husband of complainant Mr. Prem Masih Maisi was insured by Insurance Corporation under two policies respectively of Rs. 70,000 and Rs. 30,000. The said insured died on 16.2.2004, on account of heart failure, the complainant/nominee preferred claim before Insurance Corporation, which was repudiated by the Insurance Corporation, then the complaint was filed.

(3.) IN reply of the complaint Insurance Corporation averred that the deceased insured had suppressed the fact that he was suffering from a disease Cerebro Vascular Accident hereinafter called "C.V.A." for short. He was remained absent from his duty from 18.6.2001 to 5.8.2001 on medical ground. Both these facts were not mentioned in the proposal form and he declared himself having a good health. On account of suppression of material fact, the policy had become a void contract and so, no amount was payable under the policies.