SURINDER KAUR Vs. LIC OF INDIA

JUDGEMENT

(1.) THESE revision petitions arise out of one common order passed in two appeal Nos. 956 of 2000 in Surinder Kaur & Ors. v. LIC of India, allowing the appeals of complainants by setting aside the order of the District Forum and by issuing directions to LIC to make the payment against Policy No. 130946362 for Rs. 1,50,000/- dated 1.7.1994 and Policy No. 130947874 for Rs. 1,00,000/- dated 30.3.1995 with interest @ 9% p.a. from the date of 4 months after the submission of the claims.

(2.) WHILE the LIC assailed the impugned orders on the ground that the insured was guilty of suppression of material facts the complainant Surinder Kaur and other complainants in two petitions claimed interest @ 18% p.a. on the amount awarded.

(3.) THERE is no dispute between the parties that the insured Manjinder Singh had three policies - two polices for Rs. 25,000/- each and one policy for Rs. 50,000/-. On 1.7.1994, he further purchased additional policy for Rs. 1,50,000/-. On 30.3.1995 he purchased another policy of Rs. 1,00,000/- bearing No. 130947874. In the proposal form of LIC Policy No. 130946362 the deceased did not disclose about his health in dispute. Similar submission has been made about the other policy. According to the LIC, the deceased was chronic alcoholic for a period of about last 12 years at the time of filling the proposal forms. The insured died on 11.6.1995. Smt. Surinder Kaur informed LIC on 30.10.1995. Since the death of the insured had taken place within two years, an inquiry was made on the two proposal forms confirming the health of the deceased from the D.M.C. Hospital, Ludhiana where the deceased was last treated. On receipt of these forms, it transpired that the deceased was chronic alcoholic for about last 12 years and further inquiry revealed that he suppressed the material facts of his illness at the time of taking of the two policies. The claims were repudiated on 31.10.1995.