L.I.C OF INDIA Vs. LAXMI DEVI

JUDGEMENT

(1.) This appeal is directed against the order of the District Forum, Hamirpur, dated 14.3.2001, whereby the appellant -life Insurance Corporation (L.I.C.) has been ordered to make payment of Rs. 25,000/ - as insurance money of deceased Indiru Ram in satisfaction of the claim of the respondent being the nominee and widow of the said indru Ram in respect of his life insurance policy, alongwith bonus and other benefits accruing there from c*s well as 9% interest per annum from the date of death of .the insured i.e. 30 J. 1995 till realization, alongwith Rs. 500/ - at cost or litigation.

(2.) We have neard the learned Counsel for the parties and we have examined me record. The basic facts are not in dispute and are stated in the impugned order. The claim of the widow of the insured was repudiated in this case by the appellants on the ground of alleged suppression of material facts and on disclosure on the same at the time of purchasing of the life insurance policy. According to the opposite parties, while filling -in proposal form, the insured had not supplied correct information in the shape of answers to questions in, the said form. Its case further is that the insured had a heart problem pre -existing before the taking out a policy by him which fact he had suppressed. This aspect of the case has been dealt in par -7 of the impugned order and the reasons for rejecting the defence of the appellants appears to be well based. It is to the effect that the proposal form was not filled -in by the deceased Indru Ram at the time he took out the policy, but only had put his signatures on the same. It was the agent of the appellant -LIC who had filled -up the printed columns in the same. There is no endorsement therein to the effect that the information filled -in by the said Agent was read over and acknowledged to be correct by the insured Indru Ram, the proposed policy holder. It has also been reasoned in the impugned order that no , affidavit of the said Agent has been produced by way of evidence deposing that the contents of the proposal form filled -in by the deponent were read over and explained to the insured who had only signed the proposal form. We find it difficult to differ from this reasoning. In order words, the impugned order is well based both in law and on facts and calls for no interference insofar as the substantive part of the same is concerned.

(3.) For the reasons recorded above, we uphold the awarding of Rs. 25,000/ - as well as Rs. 500/ - as cost of litigation as per the impugned order. We, however, modify the same to this extent only that the intrest of 9% per annum shall be not from the date of death of the insured Indru Ram but from the date of Repudiation of the claim of the respondent widow of the insured i.e. 10.1.1997, as stated in para -3 under heading preliminary objection of the reply to the complaint filed by the appellants before the learned Forum below. The appeal is disposed of accordingly. -