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RAJASTHAN STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, JAIPUR
Hon’ble Mr. Justice J.R. Chopra, President &
Mr. Ratan Prakash, Member
LIC OF INDIA—Appellant
versus
JABA DEVI—Respondent
Appeal No. 903 of 1999—Decided on 29.12.1999
Jurisdiction - Insurance Policy - Disclosure of Medical Condition
Fact of the Case:
The appeal was filed against the decision of the District Forum allowing the claim for payment on account of the death of the complainant's husband. The appellant raised jurisdictional issues and contended that the complainant's pre-existing medical condition was not disclosed before taking the insurance policy.
Finding of the Court:
The court held that the Udaipur District Forum had jurisdiction to hear the complaint as the insurance company had a Regional Office in Udaipur. It also found that constipation, the pre-existing medical condition, did not amount to suppression of material fact as it was not a disease and was not linked to the cause of death.
Issues: Jurisdiction, Disclosure of Medical Condition
Ratio Decidendi: The court interpreted the jurisdictional provision under Section 11 and clarified that constipation, being a condition and not a disease, did not require disclosure as it was not linked to the cause of death.
Final Decision: The appeal was disposed of on merits, with the interest awarded being reduced and a refund to the insurance company if any excess amount was paid.
Mr. Justice J.R. Chopra, President—Heard the parties for final disposal of the case.
2. This appeal is directed against the order of the learned District Forum, Udaipur dated 6.4.1999 whereby the learned District Forum has allowed the claim of the complainant for payment of Rs. 1 lac on account of the death of her husband Kuber Kant Joshi. Mr. Dhingra appearing for the appellant raised two points : firstly he says that the policy was taken at Dungarpur and, therefore, Udaipur District Forum has no jurisdiction and secondly his contention is that before taking the policy in the year 1993 i.e. 28.7.1993 the complainant was suffering from constipation and that has not been disclosed. When LIC is having a Regional Office at Udaipur and it is transacting business at Udaipur then as per Section 11 the Udaipur District Forum has jurisdiction to hear such a complaint and to that extent the argument cannot be sustained. The second contention of Mr. Dhingra also has no substance. Constipation is not a disease. Actually it is a condition of the body which occurs at any time. Therefore, non-disclosure of that fact does not amount to suppression of material fact. May be the patient has died on account of cancer of rectum but it is nobody’s case that it was a result of constipation. Under these circumstances the two contentions raised by Mr. Dhingra have no substance. However the interest awarded @ 18% is excessive and it is reduced to 12% from the date of payment i.e. 2.12.1997. If any excess amount has been paid it should be refunded to the LIC within two months. With this amendment the appeal filed by the appellant stands disposed of accordingly on merits.
Appeal disposed of.
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