An insurance contract is governed by the principle of 'uberrima fides' (utmost good faith). Suppression of material facts, such as misstatement of age or forgery in the proposal form, renders the insurance contract voidable, entitling the insurer to repudiate the claim.

ORDER

DR. SUDHIR KUMAR JAIN, J

1. Briefly stated relevant facts of the case are that the respondent/the complainant/Ms. Budhwantin Bai (hereinafter referred to as “the respondent”) is the wife of the deceased, Late Narayan Tandon. The petitioner/opposite party/ SBI Life Insurance Company Ltd (hereinafter referred to as “the petitioner”) is an insurance company. The husband of the respondent, Late Shri Narayan Tandon, had purchased four insurance policies from the petitioner. Out of these, two policies were taken in his own name, bearing Policy Nos. 24087277209 and 24087610706, each for a sum assured of Rs.99,800/-, totaling Rs.1,99,600/-. The deceased had duly deposited the premiums for both the aforesaid policies and obtained official receipts issued by the petitioner. Unfortunately, the husband of the respondent passed away on 05.12.2009 at his residence in District Raipur. Following his demise, the respondent, through her son Shri Jeet Ram Tandon, lodged a claim with the petitioner insurance company and submitted all requisite documents, including the Ration Card, Identity Proof, Death Certificate, and other necessary papers. Subsequently, an investigator was appointed by the petitioner to inquire into the claim.

1.1 The investigator vide letter dated 11.07.2010 requested the son of the respondent to provide original copies of the submitted documents. In compliance, on 23.07.2010, Jeet Ram Tandon sent the original documents to the petitioner company through registered post. It was assured that the claim would be settled shortly. However, despite a lapse of over three years, the said claim has not been settled, causing severe hardship to the respondent and her family. The respondent’s family has been left without any earning member and has been undergoing financial distress and mental agony due to the petitioner’s gross deficiency in service, specifically the non-payment of the death claim. The respondent, through a registered letter dated 11.07.2012, once again approached the petitioner company, requesting the settlement of the claim. However, no response was received. The respondent being aggrieved by the act of the petitioner filed the present consumer complaint bearing no 287/2012 titled as Ms. Budhwantin Bai V SBI Life Insurance Company Ltd. under section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as "the Act") before the District Consumer Disputes Redressal Forum, Raipur (hereinafter referred to as "the District Forum") and claimed Rs.4,99,000/- and Rs.4,99,000/- for both the policies, compensation of Rs.50,000/- , litigation coast of Rs. 10,000/-, cost of Rs. 2,39,520/- for submitting documents along with interest at the rate of 12% per annum.

2. The petitioner filed reply before the District Forum and submitted that it was the case of the petitioner that the deceased life assured, at the time of obtaining the insurance policies, had withheld material information from the insurance company, thereby violating the principle of utmost good faith. It was alleged that the deceased life insured had deliberately furnished false information regarding his age and had submitted fabricated documents in support thereof. Consequently, the contract of insurance entered into between the insurer and the insured became void ab initio. The deceased had obtained two insurance policies bearing numbers 242619389 and 242619392, both dated 15.10.2009. Under poli