HDFC STANDARD LIFE INSURANCE CO.LTD., GURGAON Vs. PERMANENT LOK ADALAT PUBLIC UTILITY SERVICES, GURGAON & OTHERS

JUDGEMENT

(1.) Petitioner-HDFC Life Insurance Company Limited is aggrieved of the impugned award dated 7.10.2013 (Annexure P-8) rendered by the Permanent Lok Adalat, Gurgaon on an application under Section 22-C of the Legal Services Authority Act, 1987, whereby the petitioner has been directed to pay a sum of Rs. 2,27,467/- to the respondent-insured.

(2.) Mr. Harish Bhardwaj, learned counsel representing the petitioner submits that respondent No. 2 Mohd. Jahid Khan, father of Arifana (since deceased) had submitted a Proposal Form bearing No.13468279 dated 4.2.2010 (Annexure P-2) with plan description HDFC Money Back Assurance along with initial premium of Rs.6000/-. The said premium was received by the petitioner company vide Receipt No. 3408139, whereas Arfina died on 12.3.2010.

(3.) He further submits that the Proposal Form dated 4.2.2010 was with an intention to issue the insurance policy in favour of Arifana, but the terms and conditions of the proposal did not entail upon assuming the risk in case of any eventuality, i.e., death, which has unfortunately happened in this case. In view of such condition, the beneficiary is entitled to only refund of the premium amount as the insurance plan was valid for thirty years and only one premium of Rs. 6,000/- was received. The finding with regard to payment of Rs. 2,27,467/-, by taking into consideration the terms and conditions of the policy could not have been there in the absence of the contract, in essence the policy was never issued. Once there was no contract, the terms and conditions of the policy cannot be read into, resulting into passing of the impugned award.