RATAN KAVADIA Vs. ORIENTAL INSURANCE COMPANY

JUDGEMENT

(1.) The husband of the Complainant/Petitioner had obtained Janta Accidental Policy on 28.1.1999 for a sum of Rs. 5 lakh. The premium of Rs. 1,550 was paid. The policy was valid from 28.1.1999 to 7.1.2011. The policy holder died on 13.3.2006 in a road accident. The Complainant/Petitioner being nominee under the policy filed claim with the Insurance Company, but the same was repudiated vide letter dated 8.5.2006 in which it was stated that the Complainant had been informed that the policy in question was cancelled w.e.f. 15.2.2002 through registered notice and premium as per policy condition was returned vide cheque dated 4.3.2002. The Complainant claimed that no notice was given for cancellation of policy and the amount of premium was not received.

(2.) The Insurance Company had contested the claim on the ground that as per policy condition No. 5, the policy was cancelled by sending registered notice dated 4.2.2002 to the policyholder and a sum of Rs. 1,119 also refunded to the policyholder through cheque bearing No. 825291 dated 4.3.2002 which was sent by registered post.

(3.) Before the District Forum, the Insurance Company did not deposit the cost imposed on 24.10.2008 and also did not file receipt of intimation of cancellation or the proof of credit of the cheque in the insured account. In view of this, the District Forum ordered payment of Rs. 5 lakh with 9% interest as also a sum of Rs. 8,500 for mental harassment, besides this Rs. 1,500 for legal expenses. This order was challenged by the Opposite Party/Respondent before the State Commission. The State Commission held that it had been duly established that the notice of cancellation was sent to the policyholder by registered post. The State Commission accordingly allowed the appeal and dismissed the complaint. The Complainant has filed revision against the order of the State Commission.