LIC OF INDIA Vs. RAMESH CHANDRA

JUDGEMENT

(1.) THIS Revision Petition has arisen out of the Order dated 22.7,96 passed by the Madhya Pradesh State Commission at Bhopal dismissing the appeal and upholding the Order dated 29.11.95 of the District Forum� Dewas allowing the complaint and directing the Life Insurance Corporation of India-opposite party (for short called L.I.C.) to pay Rs. 50,000/- to the complainant within two months from 29.11.95 and also pay Rs. 150/- as costs of the case.

(2.) THE facts are not in dispute and may be briefly noticed. The complainant had taken a Life Insurance Policy No. 341860460 commencing from 27th March, 1993, for Rs. 50,000/- under 15 years money back policy with profit (with accident benefit). Under the terms of the policy, the sum assured together with accrued bonus was payable on death before the stipulated date of maturity and in case of survival, 25% of the sum assured was payable after 5 years, another 25% after 10 years, and the remaining 50% of the sum assured with accrued bonus on the stipulated date of maturity. Besides, the life assured was entitled to accidental benefits/disability benefits on account of accident vide Clause 10 of the policy. The complainant met with an accident on 25th April, 1994, resulting into injuries in his right hand, left leg below knee, nose and back of his head. Ultimately the complainant's right hand was amputated. The complainant claimed that he was entitled to receive the sum assured i.e., Rs. 50,000/- from the opposite party due to amputation of his right hand. The opposite party opined that on the basis of the averments made in the claim that no case was made out for accident/disability benefit under the terms of policy bond and did not entertain the claim. Alleging deficiency in service, the complainant filed the complaint before the District Forum, Dewas.

(3.) WE have heard Mr. S.K. Taneja, Advocate for the petitioner herein and with his help have gone through the records as the respondent did not appear either in person or through any Authorised Representative. A contract of life assurance is a contract to pay a sum of money on the death of the assured or on the happening of the events included in the insurance cover in consideration of due payment of certain annuity during the life-time of the assured. The life insurance business is defined in Section 2(11) of the Insurance Act, 1938 reading as follows: