NAND KUMARI Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) Complainants/Petitioners are the legal representatives of Kirtan Gond (since deceased) who was an employee of Bhilai Steel Plant. He had obtained a Janata Personal Accident Policy through the aegis of the INTUC. The policy was to be in force from 9.1.1999 to 8.1.2011. Kirtan Gond died an accidental death on 22.7.2006. Petitioners filed their claim under the said with the Respondent Insurance Company for payment of assured amount of Rs. 5,00,000. Respondent did not make the payment on the ground that the policy had been duly cancelled. Aggrieved by the repudiation of the claim, Petitioners filed the complaint before the District Forum seeking a direction to the Respondent to pay the assured amount under the policy with interest and costs, etc.

(2.) Respondent, on being served, filed its written statement and resisted the complaint, inter alia, on the ground that the policy had been cancelled by sending intimation thereof to the insured. It was stated that the said intimation of cancellation of policy was sent by registered post to the insured along with cheque of pro-rata premium drawn on Bank of India. That under Clause 5 of the policy, the insurer had absolute right to cancel the policy at any time. That since the policy had been cancelled prior to death of the insured, there was no deficiency in service on the part of the Respondent.

(3.) District Forum, overruling the objection raised by the Respondent, allowed the complaint and held that the Respondent was liable to pay the assured amount to the Complainants under the policy and accordingly directed the Respondent to pay the assured sum along with compensation and costs.