SENIOR DIVISIONAL MANAGER Vs. ALI HASAN AFROZE

JUDGEMENT

(1.) This is an appeal against order of District Forum I dated 3rd June, 1993. The respondent Ali Hasan Afroze obtained life insurance policy for his 14 years old son Faizan Afroze for a sum of Rs.50,000/- with the risk dated being 1.11.87. The premium was payable in half yearly instalments in May and November. He paid the premium in November, 87 and May, 88, whereafter he committed default and the policy lapsed. He then applied for the revival of the policy. He paid the premium which became due in November, 88 and May, 89 alongwith interest on 8.8.89. His son unfortunately died in All India Institute of Medical Sciences on 19.10.89. He claimed the amount due under the policy. His claim was, however, repudiated. Having failed to get any relief through representation to higher authorities, he filed the complaint before the District Forum.

(2.) The stand of the opposite party before the District Forum was that the lapsed policy was revived on the basis of personal statement regarding health in Form No.700 dated 1.8.89. The deceased as well as the aforesaid claimant as proposer had suppressed the material information regarding the state of health of the insured. This fact came to light during the investigation which was carried out while processing the claim. It was found that the deceased had remained seriously ill from 12.4.89 to 19.6.89 and the said material information was suppressed while replying relevant questions in the aforesaid Form 700 dated 1.8.89. The claim was, therefore, repudiated by letter dated 25.2.91.

(3.) On a consideration of the material on record the District Forum took the view that the acceptance of premium for November, 88 and May, 89 alongwith interest itself indicated that the opposite party was satisfied regarding insurability furnished by the complainant and accordingly it was held that there was deficiency in service. The amount of the policy together with interest @ 18% per annum was directed to be paid. Aggrieved by the order the opposite party has preferred this appeal.