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J. RAJENDRA, ANOOP KUMAR MENDIRATTA
Kanta – Appellant
Versus
Life Insurance Corporation – Respondent
JUDGMENT
AVM J. Rajendra AVSM VSM (Retd.), Presiding Member—The present Consumer Complaint has been filed under Section 21 of the Consumer Protection Act, 1986 (for short ‘the Act’) against the Opposite Parties seeking to direct the OPs:—
‘(a) The Opposite Parties be directed to pay a total sum of Rs.1 crore along with Interest @18% pa on the said amount from the date of death till actual realization to the Complainants on account of unfair trade practice and deficiency in service,
(b) Rs.10 Lacs as compensation on account of mental harassment and agony suffered by the Complainants,
(c) Rs.50,000/- as litigation costs.’
2. Brief facts, as per the complaint, are that on 16.04.2017, the Complainant’s husband (Life Assured) submitted a Proposal Form to the OP, Insurer seeking a Life Insurance Policy for Rs.1 Crore on an annual premium @ Rs.18,400/- for a period of 20 years. The risk under the policy commenced from 18.05.2017. As per the Proposal Form, he maintained good health with sober habits (non-smoker and nonalcoholic). On 29.04.2017, The OP’s empanelled doctors conducted ECG and Treadmill Tests at Jaipur, and all parameters were reported to be normal. Later, a Medical Examiner’
Law imposes duty of uberrima fides [utmost good faith], on Proposer to disclose material facts truthfully in order to enable Insurer to exercise discretion to enter into contract of insurance.
The nominee in an insurance policy can claim as a consumer even without direct contract; full disclosure of material facts is crucial in insurance underwriting.
(1) The “Three-Year Rule” (Section 45) – Under the amended Section 45, a policy cannot be questioned after three years from issuance or risk commencement on any ground.(2) Agent’s Responsibility – Th....
A policy cannot be repudiated for non-disclosure of lapsed or terminated policies, especially when ambiguity exists in proposal forms; the insured must only disclose material facts that directly affe....
Insurers can reject life insurance claims for non-disclosure of previous policies, highlighting the necessity for utmost good faith in insurance contracts.
Life Insurance Policy – Repudiation of death claim on the ground of suppression of material facts – Mere existence of past medical records is insufficient unless knowledge on part of insured is prove....
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