J.D. Kapoor, President—On account of having wrongly repudiated the claim of the deceased life assured against two insurance policies of Rs.1.00,000/- each, the appellant has been vide impugned order dated 16.05.2008, held guilty for deficiency in service and directed to pay Rs.2,00,000/- towards insurance amount of the policies and to pay Rs.60.000/- as compensation and Rs.10,000 as cost of litigation.

2. Feeling aggrieved the appellant has preferred this appeal.

3. The impugned order has been assailed mainly on the premise of the history given by the patient to the doctors of AIIMS showing that he was chronic alcoholic, smoker and suffering from pulmonary kochi and tuberculosis prior to obtaining of these policies and therefore he suppressed as to his state of health and also the fact of suffering from pre-existing disease.

4. Admittedly the life assured had taken two life insurance policies from the appellant on 15.07.1999 and 26.10.1999 for Rs.1 lac each. The said policies lapsed on account of non-payment of premium due on 15.07.2000 and 26.10.2000 but it was revived by the appellant on 27.05.2002 and 05.06.2002. Before July 2003; the deceased never complaint of an