In interpreting the terms of an insurance policy, a purposive approach should be taken to give effect to the intention of the policy and to avoid absurd or unjust results.

( 1 ) BY means of this petition, the petitioner has prayed for a mandamus directing the respondents to give benefit of disability claim of L. I. C. policy.

( 2 ) WE have heard learned counsel for the parties.

( 3 ) THE petitioner had taken two policies of L. I. C. being policy Nos. 58545803 and 58545804 vide Annexure-1 to the writ petition. While going on a scooter, he met with an accident with a truck on 17. 2. 1990 due to which his right leg had to be amputated above the knee as is evident from Annexure-4 to the writ petition. Also, his right hand was paralysed in the same accident, as stated in para 4 of the petition and as is evident from Annexure-4. These facts have not been disputed by the respondents.

( 4 ) HOWEVER, the L. I. C. refused to make payment to the petitioner on the ground that the disability of the petitioner is not total, vide Annexure-11.

( 5 ) UNDER the Insurance Policy in para 10, it is stated that the L. I. C. will make payment to the assured in case of accident which results in death or permanent disability. The expression permanent disability has been defined to mean :

"the disability above referred to must be disability which is the result of an accident and must be total and permanent and such that there is neither then nor at any time thereafter any work, occupation or profession that the Life Assured can ever sufficiently do or follow to earn or obtain any wages, compensation or profit. Accidental injuries which independently of all other causes and within ninety days from the happening of such accident, result in the irrecoverable loss of the entire sight of both eyes or in the amputation of both hands at or above the wrist, or in the amputation of both feet at or above ankles, or in the amputation of one hand at or above the wrist and one foot at or above the ankle shall also be deemed to constitute such disability. "

The above definition indicates that if the accident results in amputation of one hand and one foot, it will be deemed to be a permanent disability.

( 6 ) LEARNED counsel for the L. I. C. submitted that the petitioners hand was not amputated but was only paralysed, and hence the petitioner was not entitled to the claim. We are unable to accept this contention. In our opinion, a purposive and not literal interpretation should be given to the words, "amputation of one hand at or above the wrist".

( 7 ) IN this connection, tt may be mentioned that Maxwell in his interpretation of Statutes gives an Instance of a law in England which stated "no one shall lay hands on a priest". Maxwell says that a literal Interpretation of this expression will lead to the absurd result that while a person cannot strike a priest with his hands, he can attack a priest with a pistol or a sword. Hence the correct interpretation of the Law should be that no one can commit violence on a priest.

( 8 ) IN our opinion, the L. I. C. should not take a rigid interpretation in the matter. After all, the l. l. C. scheme is a beneficial measure and hence a liberal interpretation should be given to a claim in the policy. If a persons hand is totally paralysed, it is as bad as losing the hand.

( 9 ) IN this connection, it may be mentioned that, as pointed out by Lord Denning in Notham v. Bamet Council, (1978) 1 WLR 220. the literal Interpretation is now completely out of date and has been replaced by the purposive approach referred to by Lord Diplock in Kommins Ballrooms co. v. Zenith investments Ltd. , (1971) AC 850 (881 ). vide Lord Dennings "the Discipline of law". Chapter II.

( 10 ) IN Workmen of American Express International Banking Corporation v. Management. AIR 1986 SC 458. the Supreme Court observed :

"the principles of statutory construction are well-settled. Words occurring in statutes of liberal import such as social welfare legislation and Human Rights legislation are not to be put in procrustean beds or shrunk to Llliputlan dimensions. In construing these legislations the imposture of literal cons