LIC OF INDIA Vs. SHEETLA DEVI

JUDGEMENT

(1.) This revision is directed against the order of the H.P. State Consumer Disputes Redressal Commission, Shimla (in short, "the State Commission") dated 29.11.2010.

(2.) Undisputed facts relevant for the disposal of the revision petition are that Smt. Sheetla Devi W/o late Mohinder Singh filed a consumer complaint against the petitioner insurance company in District Forum, Mandi alleging that her husband had taken life insurance policy worth Rs.75,000/- from the petitioner/opposite party. The last premium was paid on 7th December, 2005. Mohinder Singh died during the currency of the insurance policy. However, the petitioner insurance company repudiated the claim on 28.6.2007 on the ground that the insured had withheld the material information regarding the status of his health while obtaining the insurance policy.

(3.) The District Forum, Mandi on appraisal of the pleadings and the evidence came to the conclusion that the petitioner by repudiating the claim has committed deficiency in service. Accordingly, it allowed the complaint and directed the petitioner insurance company to pay to the respondent/complainant Rs.75,000/- with 9% interest p.a. from the date of institution of the complaint besides compensation of for harassment and litigation cost of Rs.1500/-. Appeal preferred by the petitioner insurance company was dismissed by the State Commission.