Budhi Singh vs Life Insurance Corporation of India

THE challenge in this appeal is to the order of the learned District Forum, Mandi, dated 24.12.1996, whereby the complaint of the complainants/ appellants (hereinafter to be referred to as the complainants) has been dismissed.

THE brief relevant facts necessary to be mentioned for determining the point in controversy are that the complainants are unfortunate parents of a young boy named Narender Singh who died on 18.6.1993. Narender Singh was assured with the respondent/opposite party (hereinafter to be referred to as the Life Insurance Corporation) for a sum of Rs. 20,000/- vide Policy No. 150167120. THEre is no dispute that during the currency of the policy, the boy unfortunately died and the claim was preferred with the Life Insurance Corporation who have repudiated the claim on the ground that the deceased-assured has committed suicide within one year from the commencement of policy by consuming pesticide meant for preservation of wheat and committing of suidice within one year from the commencement of the policy is not covered under the policy. The version of the Life Insurance Corporation has been accepted by the District Forum on the ground that the report filed by the police (Annexure R-3) mentions that the life assured had been in depression after taking examination and as the day of result was drawing nearer, he took poison which ended his life. This stand has been taken by the Life Insurance Corporation in para-3 of the reply. According to the District Forum, since the complainants have not denied this version of the Life Insurance Corporation in their rejoinders that the life assured has consumed pesticide meant for preservation of wheat, it has to be held that the Life Insurance Corporation is not guilty of deficiency of service, as the life assured has died due to consumption of pesticide and as such the Life Insurance Corporation is not liable to pay the claim.

We have seen the record and found that para-3 of the reply filed by the Life Insurance Corporation has been specifically denied in the rejoinder by the complainants. In para 3 of the rejoinder to the reply, it is clearly stated that the "contents of this para of the reply are not admitted being false and concocted ones. In fact, the death of the deceased was caused due to cardiac failure. This fact has also been confirmed in the post mortem report of the deceased". This factual error has resulted in manifest injustice and error in the judgment of the District Forum.

THERE is no dispute that the deceased assured was assured with the Life Insurance Corporation. The parents of the deceased- assured, therefore, are entitled to the amount of compensation. THERE is no satisfactory evidence on the record to show that the deceased-assured consumed pesticide. The report of the police, in fact, is not a substantive evidence and is not supported by any affidavit of the Police Officer. At any rate, even otherwise, no report of chemical examination has been filed by the police and as such this report does not inspire any confidence. The deceased-assured, according to medical opinion, has died of cardiac arrest. In our opinion, the Life Insurance Corporation in the aforementioned circumstances has failed to establish that the life assured has committed suicide by consuming pesticide. Mr. Bimal Kumar Sharma, learned Counsel for the Life Insurance Corporation has relied upon the judgments of the National Commission in Life Insurance Corporation of India v. Smt. Lily Rani Roy, I (1997) CPJ 46 (NC) and Parees Offset Pvt. Ltd. v. United India Insurance Co. Ltd. Ors., II (1995) CPJ 9 (NC) and wants to demonstrate that even if it is held that the claim has been repudiated arbitrarily, but it cannot be said that the same has been repudiated by the Life Insurance Corporation otherwise than in good faith and there is no deficiency on the part of the Life Insurance Corporation.

THESE authorities are not of any help to the complainants, as we are of the firm opinion that once the life assured has died, the Life Insurance Corporation could not have arbitrarily without any justifiable cause withheld the assured amount and their action cannot be termed as bona fide and in good faith. In the light of foregoing, the appeal succeeds and the order of the District Forum is set aside and that the Life Insurance Corporation is directed to pay to the complainants Rs. 20,000/- alongwith interest @ 18% per annum from 18.6.19.93 till the amount is actually paid. The amount shall be paid within four weeks. The Life Insurance Corporation shall also pay the costs of Rs. 500/- both in appeal before the State Commission as well as in the complaint before the District Forum. Appeal allowed.