L I C OF INDIA Vs. CHANDERKALA

JUDGEMENT

(1.) ADMITTEDLY the insurance claim of the respondent assured cover of life was repudiated by the appellant on the solitary ground that the assured had given his age 48 years in the proposal form whereas his age was 51 years. In our view this is hardly any ground of repudiating the claim.

(2.) HOWEVER , this ground of repudiation did not find favour with the District Forum and as such vide impugned order dated 12th May, 2004 passed by the District Forum the appellant has been directed to pay Rs. 1 lac sum assured under the policy with interest @ 9% from the date of filing of complaint till the date of payment and Rs. 2,000 as cost of litigation. Feeling aggrieved the appellant has preferred this appeal.

(3.) BROAD facts are more or less not in dispute. The plea was taken that the diseased/ insured had deliberately concealed/withheld material facts / information with regard to his habit of smoking and ailment besides his age and as such Clause 5 of the terms and conditions were invoked for rejection of the insurance policy. Clause 5 provides that in case the premium is not paid or in case any condition is contravened or it is found that any untrue or incorrect statement is contained in the proposal, personal statement, declaration and connected documents or any material information is withheld, then in every such case subject to provisions of Section 45 of the Insurance Act, 1938 wherever applicable, the policy shall be void.