The insurance claim was valid despite the accident predating policy commencement due to death occurring during coverage.

This is an interesting case where the insurable interest, devolving upon a widow of a farmer, has been repudiated by the first respondent Iffco Tikio General Insurance Company Ltd. (hereinafter referred to as the Insurance Company).

The background is that the Insurance Company undertook to indemnify farmers under the ‘Sankat Haran Kisan Gramin Bima Yojana’, the policy and the terms and conditions whereof have been filed on record.

The husband of the first respondent/complainant late Gurmej Singh @ Gurpej Singh was entitled to avail the benefit of the said policy where a sum of Rs.2.00 Lakhs to the maximum was payable on injury or death if a farmer purchases fertilizer under the said Scheme. There is no dispute that the complainant’s late husband purchased fertilizer for a sum of Rs.10,620/- on 12.01.2011 through the Jind Central Cooperative Bank Limited, Branch Jajanwala, Tehsil Narwana, District Jind, Haryana, the second respondent.

While performing his agricultural operations in the field, the insured Gurmej Singh fell down from the tractor and suffered a serious fracture in his hip on 06.02.2011. He ultimately died on 05.05.2011. The aforesaid dates remain undisputed. The complainant, who is the widow of late Gurmej Singh, applied for the indemnification as per the policy which was repudiated on 11.10.2011. The repudiation letter dated 11.10.2011 is extracted hereunder:

Aggrieved by the repudiation, the complainant preferred a claim petition before the DCDRF Jind (hereinafter referred to as the District Commission) that was resisted by the Insurance Company tooth and nail. The District Commission recorded the following findings and rejected the complaint:

“5. We have heard the arguments of Ld. Counsel of both the parties and also perused the record placed on file. The husband of the complainant purchased IFFCO fertilizer from opposite party No.2 of Rs.10,620/- vide receipt No.952788 dated 12.1.2011 and there was a scheme of insurance of Rs.2,00,000/- on purchase of fertilizer from the opposite party No.1. On dated 6.2.2011 the complainant's husband fell down from the tractor and died on 5.5.2011 during treatment. The police was registered a DDR No.8 dated 14.6.2011 regarding the death of complainant's husband. The complainant applied for compensation and submitted all the necessary documents with the opposite party No.1 but the opposite party No.1 rejected the claim of the complainant vide letter dated 11.10.2011.

6. On the other hand, the opposite parties have averred that no post-mortem was conducted after the death of the husband of the complainant which was necessary for taking the claim. The complainant's husband purchased fertilizer on 12.1.2011 and accident, as stated by the complainant took place on 6.2.2011 but the policy commences on 31^st day from the date of purchase of fertilizer and remained in operation for 12 months further. In this way, the accident took place when the policy was not in operation.

7. It is clearly mentioned in serial No.7 of the terms and conditions that risk under the "sankat Haran" Bima policy shall incept from the 31st day of purchase of any brand of IFFCO fertilizer, as mentioned in the cash receipt or Debit memo and shall remain in force for a period of 12 months calculated from the 31 day of issue of cash receipt or debit memo.

8. In view of the facts and circumstances of the case, we are of the view that the accident took place when the policy was not in operation. Therefore, the opposite parties have rightly repudiated the claim of the complainant. No deficiency is established on the part of the opposite parties. Therefore, the complaint of the complainant is dismissed. Parties will bear their own costs, Copies of order be supplied to the parties under the rule. File be consigned to the record-room.”

The ground for repudiation by the Insurance Company as well as by the District Commission are one and the same,