BEFORE THE TELANGANA STATE CONSUMER DISPUTES REDRESSAL COMMISSION:HYDERABAD (ADDITIONAL BENCH)

FA. No. 106/2019 AGAINST ORDERS IN CC. No. 133/2016 ON THE FILE OF DISTRICT FORUM, KARIMNAGAR Between :

1. SBI Life Insurance Company Ltd., Control Processing Centre, Kapas Bhavan, Plot No.3A, Sector No.10, CBP Belapur, Navi Mumbai-400 614 rep by its General Manager.

2.SBI Life Insurance Company Ltd., Branch Office near Collectorate, Bhagathnagar, Karimnagar rep by its Manager.

…..Appellants/Opposite parties And Smt. Kollu Varalaxmi W/o late Sambireddy, R/o. H.No.5-201, Elkalapalli near FCI, Ramagumdam Mandal, Karimnagar District.

…Respondent/Complainant Counsel for the Appellants/opposite parties: M/s. Karra Srinivas Counsel for the Respondent/Complainant : M/s. V. Gouri Sankara Rao QUORUM: Hon’ble Sri K.Ranga Rao, Member-(J), &

Hon’ble Smt.R.S.Rajeshree, Member (N-J).

THURSDAY, THE THIRD DAY OF OCTOBER, TWO THOUSAND TWENTY FOUR *****

Order : (Per Hon’ble Sri K.RangaRao, Member -Judicial)

1. This appeal is filed by the Appellants/opposite parties 1 and 2 U/s. 15 of the Consumer Protection Act, 1986, praying this State Commission to set aside the impugned order of the District Forum, Karimnagar, passed in CC. No. 133/2016 dt.02.11.2018 and consequently dismiss the complaint.

2. For the sake of convenience, the parties are referred to as arrayed in the complaint. The Appellants 1 and 2 are the opposite parties 1 and 2 and the Respondent is the complainant in the CC.

No. 133/2016 before the District Forum.

3. The brief facts of complaint are as follows:-

The Complainant Smt. Kollu Varalaxmi is wife of one Kollu Sambi Reddy. During his life time the said Kollu Sambi Reddy obtained SBI Life Shubh Nivesh policy no 35086879910 from the first opposite party on 31st March 2015 by paying premium of Rs.24,879 and the maturity date is 31st March 2030 with maturity benefit of Rs.5,25,000 plus accrued bonus. The Policy was issued by accepting the premium amount and the life assured Sambi Reddy has shown the complainant as his Nominee. During the subsistence of the above said policy Kollu Sambi Reddy died on 20.4.2015 at Elka Palli village due to chest pain. After the death of her husband, the complainant being the nominee submitted the Insurance claim form along with all relevant documents to the opposite parties for which the opposite party issued a letter dated 31.3.2016 repudiating the claim of the complainant on the ground of non disclosure of material facts that is the life assured was taking treatment for Adenocarcinoma prior to the date of commencement of the policy. The complainant submits that the reputation of her claim is without any basis. At the time of issuing the policy the agent of the first opposite party made detailed and discrete enquiries and after taking full details from the life assured has submitted the proposal form declaration and after taking the premium amount from the life assured, the proposal was accepted by the first opposite party and then issued the policy covering the risk of the life assured. Therefore the repudiation of the claim is unjust, unethical and unsustainable in law. The act of repudiation of the claim of the complainant amounts to deficiency of service on the part of opposite parties. Hence the complainant is left with no other remedy except to approach this Forum.

4. The opposite parties filed counter denying the averments made in the complaint and submitted that the complainant applied for SBI Life Shubh Nivesh Plan vide proposal no.35QC948194 dt.23.3.2015 for an s assured sum of Rs.5,25,000/- The DLA did not reveal any adverse features relating to his health. The life insurance contract is a contract of “UTMOST GOOD FAITH” wherein the proponent is duty bound to disclose everything relating to his/her health, habits, previous insurance policy and other related matters which are within his/her knowledge at the time of making the proposal, failing which the insurer as every right to repudiate the claim. That on