JAGRAJ ALIAS JAGRAM RATHI Vs. LIC OF INDIA

JUDGEMENT

(1.) This appeal is directed against the order of the learned District Forum, Sirohi dated 24.4.1995 whereby the complaint filed by the appellant has been dismissed.

(2.) Facts relevant for disposal of this appeal in brief are that a proposal to obtain a policy for life under the endowment plan upto the age of 75 years was submitted by Smt. Saraswati Rathi, wife of the complainant-appellant on 28.3.1994 for an amount of Rs.1.00 lakh when she was of the age of 64 years. Along with the proposal, the appellant paid an amount of Rs.12,365/- through cheque as the annual premium for the policy; in respect of which the respondent issued a receipt dated 31.3.1994. Although the respondent received the amount of the premium on account of proposed policy but the policy was not issued. It so happened that the proposer Smt. Rathi died on 28.4.1994 and an intimation about it was furnished to the respondent on 29.4.1994. When the appellant claimed the amount under the proposed policy, the respondent repudiated the claim vide its communication dated 26.5.1994 observing that the proposal has not been accepted by the respondent. Aggrieved the appellant filed the complaint before the District Forum which was dismissed on the ground that there has been no acceptance of the proposal to obtain policy on the life of Smt. Rathi and that there has been no deficiency in service on the part of the respondent.

(3.) The appellant has now challenged the impugned order mainly on the ground that when the premium was accepted and a receipt thereof was issued by the respondent, a contract of insurance has come into existence and hence the repudiation made by the respondent Corporation is not tenable in the eye of law and that the appeal be accepted and the relief claimed in the complaint be granted.