HDFC STANDARD LIFE INSURANCE CO LTD Vs. JAYALAXMI

JUDGEMENT

(1.) The present revision petition has been filed by HDFC Standard Life Insurance Co. Ltd.(hereinafter referred to as the 'Petitioner') being aggrieved by the order of the State Consumer Disputes Redressal Commission, Karnataka (hereinafter referred to as the 'State Commission') decided in favour of Smt. Jayalaxmi (hereinafter referred to as the 'Respondent') who was the original complainant before the District Forum.

(2.) The brief facts of the case are that the deceased husband of the Respondent one Sidda Raju, had taken a policy from the Petitioner Insurance Company under the Single Life Endowment Plan w.e.f. 27.06.2003 for a period of 15 years. The sum assured under the said policy was Rs. 60,000/- which included accident insurance equivalent to the Policy sum, a total of which comes to Rs. 1,20,000/-. The insured died on 22.01.2004 and the Respondent being his nominee filed a claim with the Petitioner Insurance Company which repudiated the claim on the grounds that the insuree had replied in the negative to a specific query as to whether he consumer alcohol in Section 8 of the Insurance Application which signed thisspecific information. It was further stated that had this fact been disclosed inthe application, the risk assessment of the insurer would have been different. The insurance claim was, therefore, repudiated on grounds of suppression of this vital information as per the terms and conditions of the policy.

(3.) Aggrieved by this action, Respondent filed a complaint before the District Forum seeking a direction that the Respondent be paid Rs. 1,20,000/- with 18% interest and Rs. 50,000/- towards mental agony and Rs. 6,000/- towards cost. The District Forum accepted the complaint on the grounds that at the time of taking of policy on 26.06.2003, the policy holder was healthy and was not suffering from any disease and Petitioner also has not been able to produce any documents or evidence to contradict this fact. It, therefore, directed the Petitioner to pay the Respondent Rs. 60,000/- plus benefits (i.e. minus the amount pertaining to death through accident under Policy No. 204154) and in case Petitioner fails to make payment within one month, Petitioner would be liable to pay the entire amount of the policy i.e. Rs. 1,20,000/- along with interest @ 8% from 02.04.2004 till the date of repudiation of the policy. The Petitioner was further directed to pay Rs.5,000/- towards compensation and Rs. 500/- as costs.