LIFE INSURANCE CORPORATION OF INDIA LTD Vs. RADHA DEVI

JUDGEMENT

(1.) THIS appeal arises out of order dated 28.10.2009 passed by the District Consumer Forum (DCF), Nagaur whereby the Appellant Insurance Co. has been directed to pay to the Complainant a sum of Rs.7,50,000 alongwith interest @ 9% per annum from 20.7.2009 to the date of payment besides Rs.2,000 as cost of litigation.

(2.) THE Life Assured (LA) was late Shri Bhanwar Singh Choudhary who had obtained three policies by filling the proposal forms on 25.5.2006, 15.3.2007 and 30.3.2007. The policy amount was Rs. 3,50,000, Rs.2,00,000 and Rs.2,00,000 respectively. The policy holder died on 24.11.2007. A claim was filed by Smt. Radha Devi being the nominee but the claim for all the three policies were repudiated vide separate letters dated 7.4.2008 on the ground that the LA before submitting proposal forms had suffered from kidney stone for which an operation was performed but he did not disclose this fact while taking the insurance policies, rather he gave false information.

(3.) THE question for consideration is whether the repudiation by the Insurance Corporation on the aforesaid grounds was justified.