SUN LIFE ASSURANCE CO LTD Vs. NILRATAN MOOKHERJEE

JUDGEMENT

(1.) The appellants, the Sun Life Assurance Company, appeal from a judgment of the Subordinate Judge, Second Court, of Dacca, who in the suit made a declaration as follows: In the case of other forms of policies (e. g. whole life) the paid-up policy granted usually for the total amount of premium paid as contained in p. 14 of the China Mutual Insurance Company's prospectuses of 1919 and 1921 is operative, enforceable and binding on the defendant company with regard to the Policies Nos. 70944 and 73930 of the China Mutual.

(2.) A prayer for a similar declaration with regard to Policy No. 51859 was rejected. The suit arose under the following circumstances : The plaintiff, Nilratan Mookherjee, who lived near Dacca, in 1915 took out a policy for the whole of his life of the face value of Rs. 2000 at a yearly premium of Rs. 82 with the China Mutual Life Insurance Company. This is Policy No. 51859. The plaintiff says that previous to taking out the said policy, he had read a prospectus issued by the said China Mutual Life Insurance Company in 1912 and was attracted by a passage in it at p. 15 relating to paid-up policies which was as follows: In the case of other forms of policies, the paid up policy granted is usually for the total amount of premiums paid, calculated on northern rates.

(3.) In the fifth clause of the mutual agreement written on the back of the policy the company agreed to issue a paid-up policy for an amount to be determined by the company. In August 1919 he took out a further policy for his whole life of the face value of Rs. 5000 at a yearly premium of about Rs. 120. This plaintiff alleges that prior to the taking out of the said policy he read a prospectus issued by the company in January 1919 which purported to cancel the previous prospectuses and contained under the heading "Paid-up Policies" this passage: In the case of other forms of policies, the paid-up policy granted is usually for the total amount of premiums paid.