LIC OF INDIA Vs. TARA CHAND

JUDGEMENT

(1.) Life Insurance Corporation of India (hereinafter referred to as the 'Petitioner') has filed this revision petition being aggrieved by the order of the State Consumer Disputes Redressal Commission, Rajasthan (hereinafter referred to as the "State Commission") in Appeal No. 1720/1999 wherein Shri Tara Chand was the Respondent.

(2.) The facts of the case according to the Respondent are that his wife Smt. Sharda Devi (hereinafter referred to as the 'insuree') had obtained a life insurance policy for a sum of Rs. 95,000/- on 28.04.1998 from the Petitioner/Insurance Corporation and the premium was paid regularly on a half yearly basis. The insuree passed away on 09.07.1998 and the Respondent being her nominee filed an insurance claim with the Petitioner/Insurance Corporation. Petitioner, however, repudiated the claim on the grounds that insuree had suppressed material information pertaining to her illness and treatment in the hospital. Aggrieved by this, Respondent filed a complaint before the District Forum stating that the claim was wrongly repudiated since the insuree had not suppressed any material information and she was in good health as certified by a doctor who was on the panel of the Petitioner/Insurance Corporation. It was, therefore, requested that the Petitioner/Insurance Corporation be directed to settle the insurance claim of Rs. 95,000/- in favour of the Respondent along with interest, bonus and other benefits and Rs. 6,000/- as litigation cost.

(3.) The Petitioner/Insurance Corporation denied the above contentions of the Respondent and stated that the claim was rightly repudiated because the insuree had given a wrong reply in respect of a specific question which sought information whether during the last 5 years, insuree had consulted a medical practitioner for any ailment requiring medical treatment for more than one week and hospitalization. In this connection, it is on record that the Petitioner was suffering from Gastroenteritis for which she was admitted in Seekar Hospital & Research Institute from 21.04.1998 to 27.04.1998. i. e. for a period of one week. Therefore, the Petitioner rightly repudiated the claim of the Respondent.