The duty of the assured to disclose all material facts in an insurance contract, as per the provisions of the Insurance Act, 1938 - Section 45 and the Indian Contract Act, 1872 - Section 17.

ORDER

Rekha Gupta, Member. - Revision petition No. 3806 of 2009 has been filed against the order dated 22.7.2009 of the Haryana State Consumer Disputes Redressal Commission, Panchkula ('the State Commission') in Appeal No. 7 of 2005.

2. The brief facts of the case as per the respondent/complainant are that respondents husband Dr Ajmer Singh was employed with Choudhary Charan Singh, Haryana Agricultural University, Regional Research Station, Karnal, made a proposal to the petitioner No. 2 for the issuance of the insurance policy. The petitioner/insurance Company accepted the said proposal and issued the insurance policy No. 172477668 dated 18.2.2000 to the respondent for Rs. 80,000. On 30.6.2000 the husband of the respondent Dr. Ajmer Singh died due to multiple brain tumours. The respondent being the nominee of the said policy, lodged her claim with the petitioners and also submitted the required documents vide letter dated 2.5.2001. The petitioners repudiated the claim of the respondent on the ground that the deceased had withheld the correct information regarding his health at the time of affecting the insurance. The respondent approached the petitioners to consider her claim whereupon the petitioner wide letter dated 25.2.2002 rejected the request of the respondent. It was the case of the respondent that repudiation of her claim amounts to deficiency in service on the part of the petitioners. The respondent has sought a direction to the petitioners to pay her the claim amount of Rs. 80,000 along with interest @ 18% per annum from 30.6.2002 till payment and other benefits under the policy in question. The respondent has also claimed Rs. 20,000 as compensation on account of mental agony and harassment suffered by her and Rs. 2,200 as cost of litigation.

3. The petitioners/opposite parties in their written reply have alleged that the deceased had made wrong statement regarding his health in the proposal form dated 18.2.2000, hence the claim of the respondent had been rightly repudiated vide letter dated 2.5.2001. It was alleged that prior to the making proposal for the issuance of the policy in question, the deceased had undergone an operation for right kidney stone on 18.5.1998 and had taken medical leave for 46 days, i.e., from 16.5.1998 to 30.6.1998. It was alleged that the deceased had also taken treatment from Apollo Hospital, New Delhi. It was alleged that as the deceased has concealed the vital facts regarding his health at the time of making proposal for insurance so that the respondent was not entitled to any claim under the policy in question. It was alleged that the representation of the respondent was considered by the claim Review Committee and the same rejected and the same was conveyed to the respondent through letter dated 25.2.2002. Hence, the petitioners were justified in repudiating the claim of the respondent and denied any deficiency in service on their part.

4. District Consumer Disputes Redressal Forum, Karnal ('the District Forum) vide order dated 22.11.2004 dismissed the complaint by observing that:

"The time of effecting the policy on 18.2.2000, the deceased was aware of the fact that he has undergone a surgery for right kidney stone and he has availed medical leave for 46 days on that account. As the deceased had given wrong information regarding his state of health in the proposal form Ex. 04, so we hold that OPs have rightly repudiated the claim of the complainant. Accordingly, the complainant stands dismissed with no order as to costs."

5. Aggrieved by the order of the District Forum, the respondent filed an appeal before the State Commission. The State Commission vide order dated 22.7.2009, while accepting the appeal held that:

"In the instant case there is no evidence adduced on record on behalf of the opposite parties that the disease which was got treated by the complainant much prior to taking of the life insurance policy, i.e., right kidney stone for which operation was got conducted in the yea