BIRLA SUNLIFE INSURANCE COMPANY LTD Vs. MAHENDRA TODI

JUDGEMENT

(1.) Late Shri Sanwarmal Todi, father of the complainant, submitted a proposal dated 29.3.2012 to the petitioner for obtaining an insurance policy. In the aforesaid proposal, he interalia declared that he was not suffering from Diabetes. However, in the Questionnaire dated 31.3.212, he interalia admitted that he was suffering from Diabetes for last more than 5 years and he had been on medication. The name of the medicine being taken by him was also disclosed in the answer to the Questionnaire. The cheque whereby premium of Rs.45,000/- was paid by the deceased was encashed by the petitioner. The case of the petitioner is that since the deceased was suffering from Diabetes, the proposal was never accepted by it and the amount received from him was sent back vide cheque No.482353 sent by Regd. Post on 25.4.2012. The aforesaid cheque, however, could not be served upon the deceased, he having expired in the on 25.4.2012. After the death of the deceased, the complainant submitted a claim for payment in terms of the policy for which the proposal had been submitted by the deceased. The claim was rejected vide letter dated 23.5.2013 which to the extent it is relevant, reads as under:-

(2.) The complaint was resisted by the petitioner interalia on the ground that since the proposal was never accepted by them, no concluded contract of insurance came into existence and no policy or document was actually issued to the deceased.

(3.) The District Forum having ruled in favour of the complainant, the petitioner approached the concerned State Commission by way of an appeal. The said appeal also having been dismissed, the petitioner is before this Commission by way of this revision petition. The learned counsel for the petitioner company has drawn my attention to clause 5 of the receipt which was issued to the deceased at the time cheque of Rs.45,000/- was received from him. The aforesaid condition reads as under:-