BRANCH MANAGER, LIC vs RAMCHANDER SINGH

-THIS is a Revision Petition against the order dated 28th April, 1993 in Appeal No. 510/SC/92 passed by the State Consumer Disputes Redressal Commission, Uttar Pradesh at Lucknow.

BRIEF particulars of the case are as follows: The wife of the respondent Smt. Ram Lakhna Devi died on 25th August, 1990. She had taken out a life insurance policy for Rs. 10,000/- on the 28th of the June, 1990. The said policy contained "Special Female Clause" which is reproduced below: "Notwithstanding anything within mention to the contrary, it is hereby declared and agreed that in the event of death of the life assured occurring as a result of intentional self-injury, suicide or attempted suicide, insanity, accident other than an accident in a public place or murder at any time on or after the date on which the risk under the policy has commenced, but before the expiry of three years from the date of this policy, the Corporation''s liability shall be limited to the sum equal to the total amount of premiums (exclusive of extra premiums, if any) paid under this policy without interest."

"Provided that in case the Life Assured shall commit suicide before the expiry of one year reckoned from the, date of this policy, the provisions of the clause under the heading "Suicide" printed on the back of policy shall apply."

Late Smt. Ram Lakhna Devi died on the 25th of August 1990 due to burn injuries said to have been caused by heater and the garments/ clothes of the deceased catching fire.

The respondent made a claim on the revision petitioner LIC for the amount assured viz. Rs. 10,000/- under the policy but the same was repudiated by the revision petitioner LIC iun view of the "Special Female Clause" reproduced above which was a part of the msurance policy agreement. The revision petitioner LIC stated that only the premium actually paid by the insured under the policy was refundable to her.

THE respondent here was the complainant before the District Forum. THE District Forum directed the revision petitioner LIC to make payment of the amount due under the insurance policy. THE revision petitioner LIC had brought to the notice of the District Forum Clause 4(b) of the insurance policy according to which only the amount of payment actually deposited could be refunded keeping in view all the circumstances in which the insured died. However, the District Forum rejected the contention of the LIC and held that a sum of Rs. 10,000/- was payble to the husband of the deceased under the insurance policy. Lic appealed against that order before the State Commission. The State Commission held that there was no merit in the appeal and dismissed the same and thus confirmed the order of the District Forum.

IN the revision petition before us, the LIC has again drawn attention to Clause 4(b) of the policy of insurance viz. the Special Female Clause whereby if the assured dies inter alia, as a result of accident other than an accident in a public place or murder after the commencement of the policy and before the expiry of three years from the date of the policy, the liability of the Corporation is limited to the amounts paid by way of premiums under the policy without interest. After hearing Counsel and going through the records, we find that there is merit in the contention of the revision petitioner LIC. The Special Female Clause does exclude such cases and limits the amount payble under the policy to the premium actually collected. There is no dispute that Smt. Ram Lakhna Devi died as a result of the burns sustained by her from the heater while cooking food. The death occurred within the period of three years of the issuance of the policy of insurance; the policy was issued on 28th of June, 1990 and she died on 25th of August, 1990. It is also manifest from above that there has been no deficiency in service on the part of the revision petitioner LIC so as to warrant the grant of any relief to the complainant by the Consumer Forum. In the result, the revision petition is allowed, the orders of the State Commission and the District Forum are set aside and the complaint is dismissed. There is no order as to costs. Revision Petition allowed.