ORDER

J.M. Malik, (P.M) - The Insurance Regulatory and Development Authority known as IRDA, has framed Insurance Regulatory & Development Authority (Protection of Policy holders interest) Regulations, 2002 by virtue of powers confirmed by Clause (zc) of sub Section 2 of Section 114A of the Insurance Act 1938 read with Section 126 of Insurance Regulatory and Development Authority Act, 1999. Regulation No. 4 is reproduced here as under:-

" (4) Whereas proposal form is not used, the insurer shall record the information obtained orally or in writing, and confirm it within a period of 15 days thereof with proposal and incorporate the information in its cover note or policy. The onus of proof shall rest with the insurer in respect of any information not so recorded, where the insurer claims that the proposer suppressed any material information or provided misleading or false information on any matter material to the grant of a cover".

2. To our mind it is mandatory upon the Insurance Company to accept the proposal and communicate it to the proposer within a period of 15 days of the receipt of proposal.

3. The facts of this case are these. Sh. Amar Nath (since deceased), the insured, husban