LIC OF INDIA Vs. LACHHA DEVI

JUDGEMENT

(1.) Late Harman Ram Bishnoi, husband of the complainant, obtained an insurance policy from the petitioner corporation for a sum of Rs. 65,000/-. In the proposal form submitted on 29.11.2004, he inter-alia stated that neither he had ever been hospitalized nor was he suffering or had ever suffered from Tuberculosis. By way of a declaration at the foot of the proposal form, the insured declared that the statements made and the answers given by him were true and complete in every particular and he had not withheld any information. He also agreed and declared that the statements and his declaration shall be the basis of the contract of insurance between him and LIC of India and if any untrue averment be contained therein, the said contract shall be absolutely null and void. The policy having lapsed, he submitted a fresh statement to the insurer and the policy was thereupon revived. Sh. Harman Ram having died on 08.01.2007, a claim was duly submitted by his wife Smt. Lachha Devi to the petitioner corporation seeking benefits of the insurance policy taken by her husband.

(2.) The claim was rejected by the petitioner corporation on the ground that (1) He had replied in negative to the two certain questions contained in the proposal seeking revival of the policy and in fact he had been suffering from Tuberculosis for which he was admitted and treated in Mathuradass Mathur Hospital, Jodhpur in February, 2004, which fact he did not disclose in the proposal submitted by him. A reference was also made to the declaration contained at the foot of the proposal submitted by the insured. Being aggrieved from the rejection of the claim, the complainant approached the concerned District Forum by way of a complaint.

(3.) The complaint was resisted by the petitioner corporation primarily on the same ground on which the claim had been rejected. The case of the corporation in this regard was that actually the insured was suffering from Tuberculosis since prior to submitting the proposal on 29.11.2004 and he had also been treated at Mathura Dass Mathur Hospital, Jodhpur for the aforesaid disease.