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IN THE HIGH COURT OF ALLAHABAD AT LUCKNOW BENCH
Pankaj Bhatia, J.
Bajaj Allianz Life Insurance Co. Ltd. – Appellant
Versus
Shradha Padmaja Awasthi – Respondent
JUDGMENT :
Pankaj Bhatia, J.
1. Heard Sri Prasoon Srivastava, learned Counsel for the petitioner and Sri Dhruv Kumar, learned Counsel appearing on behalf of the respondent no.1. None appears for opposite party no.2.
2. The present application under Article 227 of the Constitution of India has been filed challenging an award dated 21.12.2020 passed by the Permanent Lok Adalat, Lucknow in Case No. 06 of 2017 ( Smt. Padmaja Awasthi vs Bajaj Allianz Life Insurance Company Limited and another ), whereby, the complaint filed by the respondent no.1 was allowed and the petitioner was directed to pay compensation of Rs.50,00,000/- (Rupees Fifty Lac Only) along with interest @ 9% from the date of filing of the case and Rs.5,000/- (Rupees Five Thousand Only) towards litigation cost.
3. Challenging the award impugned, the Counsel for the petitioner argues that the husband of the respondent no.1 became a member in the Master Policy issued by the petitioner-Company in favour of the respondent no.3-Yes Bank for the period 28.09.2012 up to 27.09.2013. Under the policy sum assured was Rs.50/- lac and the premium prescribed was Rs.16,854/- for a term of one year. Unfortunately the beneficiary, namely, P
Insurers must comply with statutory obligations of disclosure; failure to do so prevents repudiation of claims based on misrepresentations in policy applications.
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 insured's obligation to disclose health status is limited to knowledge of such conditions, and unsubstantiated claims of suppression cannot invalidate a life insurance policy.
The main legal point established in the judgment is that the suppression of material information regarding health condition can only lead to the repudiation of an insurance claim if the cause of deat....
The duty of the proposer to disclose all material facts in the proposal form and the materiality of the non-disclosed information for the assessment of risk in insurance contracts.
The duty of the insured to disclose all material facts at the time of obtaining an insurance policy, the significance of material facts in influencing the decision of a prudent insurer, and the conse....
1) Per Sec. 45 of Insurance Act, claim can be repudiated, if it is proved that the assured knowingly and fraudulently suppressed the material facts.2) Contractual duty so imposed on the Insured is su....
Insurers cannot repudiate a policy for suppression of facts unless they prove a causal link to the cause of death; mere suppression is insufficient.
Insurers have the right to repudiate life insurance policies for suppression of material facts, emphasizing the duty of utmost good faith in insurance contracts.
Point of Law : There is no good ground to interfere in the orders impugned.
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