Deliberate misstatement by the insured regarding material facts in the proposal form vitiates the insurance contract, and the insurance company is justified in repudiating the contract.

ORDER

R.S. Madan, President - Notice of appeal was issued to the respondent through registered post at the responsibility of the appellant but none has appeared on behalf of the respondent. We do not think it appropriate to adjourn this appeal indefinitely for service keeping in view the heavy pendency of cases in this Commission and, therefore, proceed to decide it after hearing the learned Counsel for the appellants and going through the case file.

2. This appeal has been preferred against the order dated 14.11.2006 passed by District Consumer Forum, Ambala in complaint No. 450/2005 which relates to the insurable benefits in respect of the Life Insurance Policy obtained by Dharam Singh-husband of respondent-complainant (now deceased and hereinafter referred to as the Life Assured).

3. Undisputed facts of the present case are that the life assured-Dharam Singh had got his life insured with the appellants-opposite parties for Rs. 50,000 vide Policy No. 173127688 which commenced w.e.f. 15.3.2003. The life assured died on 18.12.2003 in P.G.I.M.S. Chandigarh. The complainant submitted claim to the opposite parties with respect to the above said policy but the same was repudiated vide letter dated 27.5.2005 on the ground that the life assured had concealed the true facts with respect to his state of health at the time of making personal statement in the proposal form while obtaining policy despite the fact that he was an old case of Hypothyroidism for the last twelve years but the life assured had given wrong answers to the question Nos. 11(e), 11(i) of the proposal form. Challenging the repudiation of her claim, the complainant invoked the jurisdiction of the District Consumer Forum by filing the instant complaint which was contested by the opposite parties on the grounds stated above and the District Forum accepted the complaint vide order dated 14.11.2006 by granting following relief:

" the complaint succeeds and the same is hereby accepted. The OPs are jointly and severally directed to comply with the following orders within 30 days from the receipt of the copy of order

(i) To pay the death claim under the policy with all its related benefits with interest @ 10% P.A. from the date of repudiation till realization.

(ii) To pay Rs. 1,500 as the cost of proceedings."

Aggrieved against the order of the District Consumer Forum, the opposite parties have come up in appeal.

4. Heard.

It is contended by Mr. R.K. Sharma, Advocate for the appellant-opposite parties that as per Medical Certificate issued from P.G.I.M.S., Chandigarh, the life assured was an old case of Hypothyroidism with the history twelve years but in the declaration while giving answers to Question Nos. 11(e), 11(i) of the proposal form, he had given wrong answers with respect to his state of health. In support of his arguments, Shri Sharma referred to the Proposal for obtaining Insurance Policy Annexure R-1; Insurance Policy Annexure R-2; Status Report Annexure R-3; Certificate obtained from P.G.I.M.S., Chandigarh Annexure R-4 and Repudiation Letter Annexure R-5.

5. After perusing the above mentioned documents produced by the learned Counsel for the appellants before us, we are inclined to agree with the submissions made on behalf of the appellants. The Certificate Annexure R-4 issued from P.G.I.M.S.; Chandigarh reflects that the life assured was diagnosed as a case of Hypothyroidism in P.G.I. in the year 1990 but this fact was not disclosed by him in the proposal form Annexure R-1 while giving personal statement, the relevant part of which is reproduced as under: