LIC OF INDIA Vs. SHIVMANGAL RAM BAGHEL

JUDGEMENT

(1.) This revision petition has been filed under section 21(b) of the Consumer Protection Act, 1986 against the order dated 13.04.2010, passed by the Chhattisgarh State Consumer Disputes Redressal Commission (hereinafter referred to as 'the State Commission') in First Appeal No. 619/2009, "Life Insurance Corporation of India Vs. Shivmangal Ram Baghel & Anr.", vide which, while dismissing the said appeal, the order dated 22.09.2009, passed by the District Forum Sarguja, Ambikapur allowing the consumer complaint No. 124/2007, filed by the present respondent/complainant, was upheld.

(2.) Briefly stated, the facts of the case are that the complainants/respondents are the parents of their deceased son Dinesh Kumar Bhagel, who is stated to have died in a road accident on 04.02.2006. The deceased Dinesh Kumar Bhagel had obtained an insurance policy on 25.03.2005, called Limited Payment Endowment Policy with Profits from the Opposite Party (OP) Life Insurance Corporation of India (LIC) for a sum of 1 lakh. The case of the complainant is that under the Policy, the respondent LIC had agreed to pay, apart from the sum insured, an accidental benefit of 1 lakh under the terms and conditions of the policy. The complainants submitted claim with the LIC after the death of the said Dinesh Kumar Bhagel, but the same was repudiated by the LIC on the ground that the deceased policy holder was driving motor cycle under the influence of liquor and that he had no driving licence. Alleging deficiency in service on the part of the LIC, the complainants filed the consumer complaint in question, seeking directions to them to pay a sum of 2 lakh and a compensation of 25,000.00 along with interest @12% p.a. on the aforesaid sums from the date of filing the complaint till realisation.

(3.) The complaint was resisted by the OP LIC by filing a written statement before the District Forum, in which they stated that the deceased was in the habit of consuming liquor in excess, but he concealed this fact from the Insurance Company, while filling the proposal forum. Moreover, the policy holder died in an accident within 10 months of taking the policy by driving his motor cycle in a rash and negligent manner under the influence of liquor. Hence, the LIC had got investigation into the matter conducted, treating it as an early death claim. Based on the said investigation, the claim had been repudiated.