MARKETING MANAGER, LIC OF INDIA vs S.VIJAYA

THIS is a Revision Petition against the order of 6th December, 1993 in Appeal No. 169 of 1992 passed by the State Commission of Karnataka. By this order, the State Commission set aside the order of 16th July, 1992 of the District Forum, Bangalore which had dismissed the complaint. The State Commission, while allowing the appeal against the order of the District Forum, directed the payment to the complainant of a sum of Rs. 24,000/- with interest at 18% from 6.12.1989 till the date of payment and costs of Rs. 2,500/-.

IT is not necessary to go into detail regarding the facts of this case. The essential facts necessary for the disposal of the case are cited below: The husband of the Respondent, S.Vijaya, had taken a Life Insurance Policy for Rs. 30,000/-. This was lapsed due to non-payment of the premium for January, 1989. It was revived after the lapse of over 10 months, i.e., on 30th November, 1989 at the instance of the insured. The insured died on the 6th December, 1989. The widow''s claim under the Insurance Policy was repudiated by the insurer on the ground that the insured had suppressed the ailments from which he had been suffering viz. Hepatic Encephalapathy and Cirrhosis of liver and also jaundice.

THE insured had been required to submit the personal statement of health before getting the policy revived. This statement was furnished by the insured in November, 1989.

THE insurer has produced a case summary and discharge record from St. John''s Medical College Hospital, Bangalore where the deceased insured was admitted on 11th September, 1989 and discharged on 14th September, 1989 and again treated from 30th October, 1989 to 2nd November, 1989. According to the diagnosis, as noted in the Discharge records of the hospital the insured was suffering from Cirrhosis of liver and he was a chronic alcoholic from about 10 years, and he had three attacks of jaundice. It is evident that in the personal health statement submitted by the insured just prior to the revival of policy, he had suppressed the material facts concerning his health. As such, the repudiation of the policy by the Life Insurance Corporation was fully warranted and there has been no deficiency in service because of such a repudiation. In the result, this Revision Petition is allowed, the order of the State Commission is set aside and that of the District Forum is restored. There is no order as to cost.