DIVISIONAL MANAGER LIC OF INDIA Vs. PAPPAYEE

JUDGEMENT

(1.) The Life Insurance Corporation of India of which the 2 opposite parties are the officers against whom an award has been passed by the District Forum are the appellants. The complainant's husband Sengoda Gounder took an insurance policy on 16.3.1992 for a sum of Rs.15,000/-. On 20.5.1993 Sengoda Gounder died. The complainant made a claim with the opposite parties. But her claim was rejected to 6.4.1994 on the grounds that Sengoda Gounder was suffering from Tuberculosis of the past 5 years and he was taking treatment but in the proposal form the insured had not disclosed the same, and since the insured failed to disclose the material facts and suppressed the same in the proposal form the complainant cannot seek payment for any insurance amount. Alleging deficiency in service on the part of the opposite parties in repudiating the claim the complaint was filed.

(2.) The opposite parties contended inter-alia that the investigation made by them subsequent to the death of the insured revealed that Sengoda Gounder was suffering from Tuberculosis and was taking treatment even before he gave the proposal. As he had not disclosed the material facts in the proposal form dated 28.2.1992 the Life Insurance Corporation was entitled to reject the claim of the complainant.

(3.) The District Forum on consideration of the pleadings and the evidence came to the conclusion that the opposite parties had not proved that there was suppression of material facts by the insured at the time of proposal and therefore the repudiation of the claim was not proper and that amounted to deficiency in service. So holding it ordered the opposite party to pay to the complainant a sum of Rs.15,000/- under the policy with interest thereon @ 18% p. a. claimed from the date of repudiation till the complaint which comes to Rs.3,345/- and also a cost of Rs.500/- all totalling to Rs.18,845/-.