LIC OF INDIA Vs. KANCHANBALA BADU

JUDGEMENT

(1.) Appellant was the opposite party before the State Commission, where the respondent/complainant had filed a complaint alleging deficiency in service on the part of the appellant.

(2.) Undisputed facts of the case are that the complainant's deceased husband had obtained two insurance policies from the appellant. Upon death of the insured when the claim was preferred, the complainant paid the amount in respect of first policy but repudiated the claim in respect of second policy, on the ground that Policy holder has suppressed the material fact while submitting the proposal form, for the second policy. It is in these circumstances that a complaint was filed before the State Commission, who after hearing the parties allowed the complaint and directed the appellant to pay the policy amount relating to the second policy. Aggrieved by this order this appeal has been filed before us.

(3.) We heard the learned Counsel for the parties and perused the material on record. Two points have been raised before us by the appellant-firstly, that at the time of taking the second policy, in the proposal form, the deceased had not mentioned of having been a holder of earlier policy and secondly, the cause of death of the deceased is Leukemia, which the insured had suppressed.