THE LIFE INSURANCE CORPORATION OF INDIA, 1ST FLOOR, JEEVAN JYOTI, SECTOR Vs. THE PERMANENT LOK ADALAT, UDAIPUR

JUDGEMENT

(1.) This writ petition has been filed by the petitioners-corporation being aggrieved with the order dated 05.07.2016 passed by the Permanent Lok Adalat, Sri Ganganagar (hereinafter referred to as 'the court below'), whereby the court below has accepted the application filed by the respondent No. 2 Rajeshwari Devi under Section 22-C of the Legal Services Authorities Act, 1987 (hereinafter referred to as 'the Act of 1987') and directed the petitioners-corporation to pay the insurance claim of Rs.2,00,000/- to the respondent No. 2 within a period of 45 days along with the interest @ 6% per annum from the date of filing of the application. The court below has also directed the petitioners-corporation to pay Rs.25,000/- to the respondent No. 2 in lieu of litigation cost and mental harassment caused to her.

(2.) Brief facts of the case are that the respondent No. 2 filed an application under Section 22-C of the Act of 1987 before the court below while stating that her husband late Labhchand Bhanbhu was employed as Junior Engineer in the Public Health and Engineering Department. She further stated that her husband has submitted a proposal form for his life insurance before the petitioners-corporation on 30.05.2006 and a life insurance policy bearing No. 501756198 was issued by the petitioners-corporation, whereby a sum of Rs.2,00,000/- was assured under the said policy. The respondent No. 2 was made nominee in the said policy, which was to be matured at 28.04.2028 and half yearly premium for the said policy was Rs.7642/-. It was claimed that Labhchand Bhanbhu suddenly died on 18.05.2008 at his residence and the respondent No. 2 applied for insurance claim as per the above policy with the petitioners-corporation, however, the petitioners-corporation refused to pay the insurance claim vide communication dated 27.01.2009 while stating that late Labhchand Bhanbhu has not disclosed about his disease in his proposal form dated 15.05.2006 and, therefore, the insurance claim is rejected.

(3.) The court below has observed that it was the duty of the petitioners-corporation that before issuance of policy in favour of late Labhchand Bhanbhu, they should get him medically examined. The court below has also observed that the petitioners-corporation has not produced any evidence to the effect that before issuance of policy in favour of late Labhchand Bhanbhu, the petitioners-corporation has conducted his medical checkup. The court below has held that the petitioners-corporation, only with the intention to hide its negligence, is blaming the insured person for not producing information regarding his disease in the proposal form and the petitioners-corporation cannot escaped from its liability.