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PRAKASH PADIA
HDFC Standard Life Insurance Company Ltd. – Appellant
Versus
Permanent Lok Adalat Moradabad – Respondent
JUDGMENT :
Hon'ble Prakash Padia, J.
The petitioner has preferred present writ petition inter alia with the prayer to quash the award dated 8.12.2021 passed by respondent No. 1 namely Permanent Lok Adalat, Moradabad, U.P.
2. The facts in brief as contained in the writ petition are that petitioner namely H.D.F.C. Standard Life Insurance Company Ltd. is a company registered under Companies Act, 1956 and as per Section 3 of the Insurance Act, 1938 carrying on life insurance business. The life assured namely late Ravi Kiran has approached the petitioner-insurance company for issuance of insurance policy in the year 2018 and has submitted the proposal form and other required documents to obtain the insurance policy. Upon his instructions and the declaration made thereunder, the petitioner considering the same to be true and correct in all aspect issued the policy. The salient features of the policy are as under :
| Policy no | 20043201 |
| Date of proposal received | 1.2.2018 |
| Date of RCD | 2.2.2018 |
| Date of death | 27.3.2018 |
| Policy duration | 1 month 25 days |
| Plan |
|
The court established that conciliation proceedings under the Legal Services Authorities Act are mandatory, and failure to adhere to this process invalidates any resultant award.
In insurance contracts, the insured must disclose all material facts; failure to do so can lead to repudiation of claims under Section 45 of the Insurance Act, 1938.
The main legal point established in the judgment is that the conciliation proceedings under Section 22(C) of the Legal Services Authorities Act, 1987, are mandatory in nature and must be conducted be....
Conciliation proceedings mandated by law must occur before any judgment in disputes regarding insurance claims; bypassing this duty invalidates the award.
There is nothing wrong in deciding the matter based on evidence adduced in the earlier round of litigation
Insurers must comply with statutory obligations of disclosure; failure to do so prevents repudiation of claims based on misrepresentations in policy applications.
The Permanent Lok Adalat can decide a dispute only after following the procedure outlined in Section 22C of the Legal Services Authorities Act, 1987.
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