ASHA GARG Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) THIS case illustrates how the purpose of insurance coverage for indemnifying contemplated peril is frustrated by one or other method adopted by the Insurance Company and/or the casual manner in which insurance coverage is granted without proper verification and thereafter it is sought to be avoided on one or the other pretext. It also highlights below mentioned facts and the requirements for change or reform of the age old proposal and insurance form containing terms and conditions prescribed and followed by the Insurance Companies in India:

(2.) IN this case, the insurance coverage was given on 11.2.1997 by the United India Insurance Company Ltd. for a sum of Rs.9.97 Crores and Rs.3 lakhs by charging a premium of of Rs.68,045/- and Rs.473/- respectively which was paid by cheque dated 10.2.1997. The same was acknowledged by receipt dated 11.2.1997. Thereafter, a policy dated 19.2.1997 was issued in favour of the insured for the period between 11.2.1997 and 10.2.1998, for a sum of Rs.10 Crores.

(3.) UNFORTUNATELY , on 27th March, 1997, when the insured was travelling in his car by road from Jaipur to Delhi met with a fatal accident. His car was smashed and the insured died on the spot. He was taken to the hospital and was declared as dead. Prosecution against the driver of the truck is lodged and is pending. As the claim was repudiated, the heirs of the deceased (nominees as per the policy) have filed Original Petition No. 164 of 2001 against the United India Insurance Company Ltd. claiming payment of Rs.10 Crores with interest at the rate of 24% p.a. with compensation and costs.