ELSA TONY PHILLIP Vs. MANAGER, LIC OF INDIA

JUDGEMENT

(1.) THIS appeal is directed against the order dated 11.3.1999 of Kerala State Disputes Redressal Commission, Thiruvananthapuram dismissing the complaint filed by the appellant.

(2.) IN nutshell, the facts giving rise to this appeal are these. Tony Phillip, husband of the appellant was approached by an agent of the responden"opposite party/Insurance Co. on 29.3.1995 for purchase of a policy. On Tony Phillips agreeing to buy a policy of Rs. 3,00,000, proposal form was filled up. A cheque of Rs. 1,662 drawn on Syndicate Bank, Kottayam towards premium was given. Tony Phillip met with an accident on 17.4.1995 and he died. On claim not being settled, complaint was filed by the appellant which was contested by the respondent -Insurance Co. It was stated that the proposal was received in the office of Insurance Co. on 30.3.1995 alongwith a cheque of Rs. 1,662 which was encashed and its amount was kept in suspense account and suspense memorandum was issued. Though the decision to accept the proposal was taken on 18.4.1995 but neither the acceptance was communicated nor policy was issued as in the meanwhile on 25.4.1995 the Insurance Company received intimation of Tony Phillip having expired on 17.4.1995 in a road accident. It was pleaded that no concluded contract came into existence between the parties. Signature on the medical report accompanying the proposal form also varied with the signatures the deceased on other documents. Liability to pay the amount claimed was denied.

(3.) THRUST of argument advanced by Shri T. Harish Kumar for the appellant is that alongwith the proposal first premium was paid by Tony Phillip by issuing a cheque of Rs.1,662 which was got encashed by the Insurance Co. and, thus, a concluded contract came into existence between the parties and the order under appeal was thus, legally erroneous. As may be seen from the order und challenge, the State Commission in reaching the conclusion that concluded contract had come into existence, has heavily relied the decision in Life Insurance Corporation of India v. Raja Vasireddy Komalavalli Kamba and Ors.1 Omitting immaterial portion, para Nos. 14 & 15 of this decision at pages 726 & 727 of the report read thus: