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Judgment
THE appellant being aggrieved by the order passed by District Forum, Mandsaur in Case No. 137/92 dated 24.6.93 has preferred this appeal.
THE undisputed facts are one late Shri Usmankhan submitted a proposal for insurance of Rs. 12,000/- on 31st March, 1990, and policy was also issued by the non-applicant appellant in favour of late Shri Usmankhan under a non-medical scheme. THE policy No. 340710425 for Rs. 12,000/- under table and term No. 90-15 (marriage endowment plan educational annumity with profits and accident). That the maturity date of the policy is 28th March, 2005. This policy was taken by Usmankhan as per proposal form for the performance of marriage of his daughter Ku. Razia. The points for determination in this appeal are:- (1) Whether late Usmankhan concealed material facts about the condition of health? (2) Whether the order passed by the District Forum suffers from illegality.
In the order passed by the Forum on 24.6.93 the District Forum was of the view that Usmankhan submittted proposal form and it was accepted. It was the duty of the nonapplicant company before acceptance of the offer to investigate the allegations. Once proposals have been accepted and the policy was issued, the premium was paid, then the nonapplicant has no right to deny the claim.
THIS argument by the District Forum has no legal force. In such cases declaration is about the condition of health and if one conceals material facts about one''s health. The Insurance Company may refuse payment. The Insurance Company gave Smt. Amnabai the registered letter dated 31.3.92 is on record. As per this letter in answer to question Nos. 15, 16, 18 and 20 late Usmankhan concealed facts that he was suffering from Silicosis and he was taking treatment. Even in affidavit Amnabai did not say that her husband was not suffering from any disease. Usmankhan before his death and before the policy was issued was admitted in hospital from 11.4.89 to 8.1.90. THIS is certificate from Dr. N.K. Jain that he was suffering from Silicosis disease for which he was being treated. He concealed these facts from the company. The District Forum without considering the evidence placed on record and the investigation made by the Insurance Company had passed impugned order. In result this appeal is allowed and the order of the Forum is set-aside. No order as to cost. Appeal allowed.