LIC OF INDIA Vs. JOGINDER KAUR

JUDGEMENT

(1.) The grievance of the LIC in this revision is that the proposal form to get the deceased insured contained incorrect facts and the proposer was guilty of concealment of material facts to attract the forfeiture clause of the insurance policy.

(2.) The facts in brief are that the deceased Sh. Bachan Singh had taken the policy for a sum of Rs. 1.00 lakh in the year 1997. He died on 23.8.1998 leaving behind the complainant his widow and other complainant Nos. 2, 3 and 4 as legal class I heirs. The complainant widow filed a claim. It was repudiated vide letter dated 23.1.1999. As the insurance policy was subject matter as collateral security was given to LIC Housing Finance Ltd. - respondent No. 5 which had also been made a party.

(3.) The LIC contested the matter, inter alia, on the ground that while submitting the proposal form for getting the policy, the insured had not correctly stated about his state of health as at that time he suffered from diabetes mellitus and he was chronic alcoholic and he had an attack of jaundice. He was suffering from ascetics, septicemia, NIDDM, Portal hypertension, etc. He had concealed the material facts regarding his health and did not disclose them in his proposal form and made fake statements deliberately and, as such, his claim was rightly rejected.