IMPORTANT POINT
False answer given by insured in proposal form may vitiate insurance cover.

V.K. Jain, Presiding Member—Late Shri K. Manjunatha, husband of the complainant obtained an insurance policy from the petitioner under which he was entitled to a sum of Rs.50,00,000/- on his death along with accidental benefit of Rs.5,00,000/-. The deceased was working as a driver with KSRTC Bangalore, at the time the policy was taken. He allegedly met with an accident while walking on road on 18.9.2005 and was admitted in NIMHANS hospital, Bangalore where he died on 19.9.2005. A claim lodged by the complainant for payment of benefits in terms of the insurance policy taken by the deceased was repudiated vide letter dated 12.12.2007, which to the extent it is relevant, reads as under:—

“In this connection we have to inform you that, in the proposal for Assurance and personal statement signed by the deceased Life Assured on 16.12.2004, under the above policy, he had answered the following questions as under noted:—

	Questions	Answers
4(a)	Present occupation:	Driver
	Exact nature of duties:	Agriculture Driver
4(b)	Name of present Employer:	Depo Manager, KSRTC-
		Bangalore
	Length of service with him	Six years
11(a)	During the last five years did you consult a
	Medical Practitioner for any ailment requiring
	treatment for more than a week?	No
(b)	Have you ever been admitted to any hospital
	or nursing home for general check-up, observation,
	treatment or operation?	No
(e)	Are you suffering from or have you ever suffered
	from Diabetes, Tuberculosis, High Blood Pressure,
	Low Blood pressure, Cancer, Epilepsy, Hernia,
	Hydrocele, Leprosy or any other disease?	No
(h)	Do you use or have you ever used
	i. Alcoholic drinks	No
	ii. Narcotics	No
	iii. Any other Drugs	No
	iv. Tobacco in any form	No
(i)	What has been your usual state of health?	Good

We may, however, state that all these answers were false as we have evidence and reasons to believe that before he proposed for the above policy he was alcoholic and received treatment for deaddiction for alcoholic depression for a long time for which he had consulted medical men and had taken treatment from Hospital. He has mentioned in the proposal that he was working as a Driver in KSRTC as on the date of proposal. However, our enquiry has confirmed that he was no longer in service as on the date of proposal. He, however, did not disclose these facts in the proposal. Instead he gave false answers therein as stated above.

It is therefore evident that he had made incorrect statements and withheld correct information from us regarding his health at the time of effecting the Assurance with us and hence in terms of the policy contract and the declarations contained in the forms of Proposal for assurance and personal statement, we hereby repudiate the claim and accordingly, we are not liable for any payment under the above policy and all monies that have been paid in consequent thereof stand forfeited”.

2. Even after repudiation of the claim, an ex-gratia of Rs.2,50,000/- was made to the complainant by the petitioner Corporation on 26.10.2009. Being still dissatisfied she approached the concerned District Forum by way of a consumer complaint on 18.3.2013.

3. The complaint was resisted by the Petitioner Corporation primarily on the grounds on which the claims had been repudiated.

4. The District Forum having allowed the complaint, the petitioner Corporation approached the concerned State Commission by way of an appeal. The said appeal also having been dismissed, the Corporation is before this Commission by way of the present revision petition.

5. Though notice of the revision petition is reported to have been served on the respondent / complai