The main legal point established in the judgment is the requirement for full and honest disclosure of material facts by the insured at the time of inception of an insurance policy, emphasizing the principle of utmost good faith in insurance contracts.

ORDER

S. Coari, Member - The present Appeal has been directed against the judgment and order dated 4.7.2008 passed by the Cooch Behar District Consumer Forum in Case No. DF 43/2006 wherein the learned District Forum allowed the complaint in favour of the complainant.

2. The complainant's case before the learned District Forum, in brief, was that one Jhapashi Rajbhar during his lifetime obtained a Life Insurance Policy from the Appellants concerned and during the continuance of such LIC policy he died on 28.9.2003. The complainant is the nominee and wife of the deceased who preferred a claim before the Insurance Company and the claim was deferred by the company on some pretext or other and ultimately the same was repudiated on the ground of withholding of some material information about the condition of health of the deceased at the time of inception of the insurance policy. Being aggrieved and dissatisfied with such repudiation the complainant preferred the complaint before the learned District Forum.

3. The Appellants/OPs contested the complaint case contending inter alia that the deceased intentionally withheld some material information about the condition of his health namely that he was suffering from various ailments including cirrhosis of liver which has ultimately caused his untimely death and that such withholding of material information has actually vitiated the contract between the parties and, as such, there was nothing wrong on the part of the Insurance Company to repudiate the claim of the complainant.

4. The learned District Forum after considering the respective parties' case has observed that the plea taken by the Appellants/OPs to the effect that there was material suppression of facts in respect of the health condition of the insured was not acceptable and accordingly rejected the plea and upheld the claim of the complainant.

5. The only moot question that revolves round the present Appeal is as to whether the learned District Forum was justified in disposing of the complaint petition in the manner as discussed above.

Decision with reasons

6. At the time of hearing the learned Advocate on behalf of the Appellants has submitted before us that there was positive withholding of information at the instance of the insured so far as it relates to his health condition inasmuch as he was suffering from various ailments at the time of inception of the insurance policy, which has ultimately caused his untimely death. According to the learned Counsel, the repudiation of claim was genuine as the Appellants took information from the employer of the deceased wherefrom it could be gathered that the deceased obtained medical leave for a long period due to various ailments. But for some obvious reasons this fact of suffering from various ailments were intentionally suppressed by the insured at the time of inception of the insurance policy as it would be evident from the filled up form of the insurance policy in question wherein there was specific questionnaire to that effect to which the insured has answered No . While elaborating her submission on this point the learned Advocate on behalf of the Appellant has also submitted to us that there no denial of the fact that the insured has died due to cirrhosis of liver and there was no disclosure of earlier ailments of the insured and on these grounds the repudiation of claim at the instance of the Appellants was proper and justified. According to the learned Advocate, the adverse inference drawn by the learned District Forum is not supported by materials on record. In this connection, the learned Advocate has also submitted that the contract of insurance is based on utmost good faith. But it is extremely unfortunate that the insured did not observe this condition of good faith at the time of inception of the insurance policy under consideration and accordingly the contractual agreement between the Appellant and the insured is vitiated under the provisions of the Indian Contract Act. Whi