Nand Kumari vs ORIENTAL INSURANCE CO LTD

COMPLAINANTS/Petitioners are the legal representatives of Kirtan Gond (since deceased) who was an employee of Bhilai Steel Plant. He had obtained a Janata Personal Accident Policy through the aegis of the INTUC. The policy was to be in force from 9.1.1999 to 8.1.2011. Kirtan Gond died an accidental death on 22.7.2006. Petitioners filed their claim under the said policy with the Respondent Insurance Company for payment of assured amount of Rs. 5,00,000. Respondent did not make the payment on the ground that the policy had been duly cancelled. Aggrieved by the repudiation of the claim, Petitioners filed the complaint before the District Forum seeking a direction to the Respondent to pay the assured amount under the policy with interest and costs, etc.

RESPONDENT, on being served, filed its written statement and resisted the complaint, inter alia, on the ground that the policy had been cancelled by sending intimation thereof to the insured. It was stated that the said intimation of cancellation of policy was sent by registered post to the insured along with cheque of pro-rata premium drawn on Bank of India. That under Clause 5 of the policy, the insurer had absolute right to cancel the policy at any time. That since the policy had been cancelled prior to death of the insured, there was no deficiency in service on the part of the Respondent.

DISTRICT Forum, overruling the objection raised by the Respondent, allowed the complaint and held that the Respondent was liable to pay the assured amount to the Complainants under the policy and accordingly directed the Respondent to pay the assured sum along with compensation and costs.

RESPONDENT, being aggrieved, filed the appeal before the State Commission. State Commission reversed the order of the District Forum and held that the policy had been cancelled on 26.11.2000 during the life-time of the insured and an intimation to that effect had been sent to the insured by a registered letter on his address, Sector-7, ST. 31A, Quarter No. 21B. Plea raised by the Petitioners that the intimation should have been sent at the permanent address was not accepted.

COUNSEL for the parties have been heard.

IT is not in dispute before us that the policy could be cancelled at any time by the insurer as averred by the Respondent in para Nos. 4 and 5 of its written version. The insured died on 22.7.2006. Policy had been cancelled by the Respondent on 26.11.2000 and an intimation to that effect was sent to the insured by a registered letter addressed to him at the address given by him in the proposal form for obtaining the said policy. Intimation regarding cancellation was sent to the insured along with cheque of pro-rata premium drawn on Bank of India.

WE agree with the view taken by the State Commission that the intimation of cancellation of policy had been received by the insured on the address given by him. Plea now taken by the Counsel for the Petitioners that the intimation regarding cancellation of policy was not received by the insured cannot be accepted. Petitioners have failed to place any evidence on record that the insured had sent any premium to the Respondent after the cancellation of the policy till his death. Since the policy stood cancelled during the life time of the insured, there was no deficiency in service on the part of the Respondent in repudiating the claim and not paying the amount under the policy. We do find any infirmity in the order passed by the State Commission. Dismissed. Revision Petition dismissed.