L I C OF INDIA Vs. PROMILA MALHOTRA

JUDGEMENT

(1.) In this case, LIC has challenged the judgment of the State Consumer Disputes Redressal Commission, Delhi dated 25.11.1994 whereby the State Commission by majority decision had allowed the complaint of the widow of the deceased or ordered payment of Rs. 1,00,000/- with interest @ 18% per annum from the date of filing of the complaint i.e. 31.12.1991 till date of payment together with damages amounting to Rs. 10,000/-.

(2.) The President, however, did not agree with this decision and returned the finding of suppression of facts and dismissed the complaint.

(3.) Two insurance policies were taken by the deceased, one for Rs. 75,000/- and another for Rs. 25,000/- bearing Nos. 110450187 and 110405184 respectively. Both are dated 15.5.1997. It was not disputed before us that the policies were issued after a medical examination by the doctor of the LIC and it was after full satisfaction that the appellant had issued the policies. The deceased insured died in January, 1990 i.e. more than two years after taking the policies. It is pointed out that cause of his death was kidney failure. Appellate L.I.C. repudiated the claim on the basis that the deceased had concealed material facts at the time of taking of the policies. Before we proceed any further it would be appropriate to notice the provisions of Section 45 of the Insurance Act, which is as follows :