CHAIRMAN LIC OF INDIA Vs. BYRA SARADA

JUDGEMENT

(1.) The appeal is filed by the opposite parties i. e. , the authorities of Life Insurance Corporation of India. The complainant's husband took a policy for Rs.40,000/- and the risk was commenced from 12-6-1989. He died of heart-attack on 10-7-1989. The complainant was made as nominee. On a complaint made by the complainant, the Corporation repudiated its liability on the ground that the complainant's husband failed to disclose at the time of proposal that he suffered from piles, typhoid in April, 1988 and February, 1989 and for those periods he availed sick leave from his employer from 1-4-1988 to 30-4-1988 and 3-1-1989 to 6-3-1989.

(2.) Before the District Forum, the Insurance Company filed a statement giving in the shape of answers to the question are by one Dr. G. Ranga Rao, wherein, it was stated that the life assured suffered from inflamed external haemorrhages and the Doctor treated him for the same.

(3.) The District Forum found that the suffering from piles or typhoid fever is not a material circumstance that would have made the Insurance Company to refuse to accept the policy, had they known about these ailments. According to the District Forum these are very common ailments and cannot be said to be the suppression of material facts, which would have made the opposite party to decide whether the policy is to be accepted or not to be accepted. Moreover, it was held that the assured died of heart-attack, with which, these ailments have nothing to do.