Life Insurance Corporation of India and Others vs Santosh Gupta

Rajesh Bindal, J.—The defendants are in appeal against the judgment and decree of the learned lower appellate court, whereby that of the trial court was set aside and the suit of the plaintiff-respondent challenging repudiation of insurance claim on account of death of her husband, was decreed. In the case in hand, the respondent-plaintiff filed the suit on the ground that she was married to Raj Kumar Gupta on 19.12.1967. He was working with Indian Air Force as Squadron Leader. He sought pre-mature retirement w.e.f. 1.2.1984. He got two insurance policies from Life Insurance Corporation of India (for short, ''the Corporation'') on 28.2.1987 and 26.2.1988 for Rs. 50,000/- each. In both the policies, the respondent-plaintiff was declared hi s nominee. After seeking pre-mature retirement from Indian Air Force, deceased-Raj Kumar Gupta took employment with M/s. Varinder Agro Chemicals Limited, Ludhiana w.e.f. 1.1.1985 and remained in service till 16.5.1990. He died on 28.8.1990. When the claim against the policies was made, the same was denied on the ground that at the time of taking the policies, deceased-Raj Kumar Gupta had deliberately misstated and withheld material facts in the proposal form. It was further pleaded that deceased-Raj Kumar Gupta did active duty in Indian Air Force before he sought voluntary retirement w.e.f. 1.2.1984. He was medically examined by the Medical Board of Indian Air Force. A certificate of his having good bodily health and prospect of an average duration of life was issued by the Medical Board and his pension was sanctioned. He was granted pre-mature retirement as he was unfit to fly as an Aircrew, however, he was fit for ground duty and fly as a passenger. He was found to be medically fit for all ground duties in any part of the world. The Medical Board found that deceased-Raj Kumar Gupta was suffering from Bicuspid Aortic Valve. It was further pleaded that even after taking pre-mature retirement from Indian Air Force during his service career with private employer, the deceased never fell ill. He was employed on the post of Manager (Personnel) (Administration). He was very active and having good physique.

The claim made by the plaintiff-respondent was contested by the present appellants-defendants on the ground that once it was in knowledge of deceased-Raj Kumar Gupta that he was suffering from Bicuspid Aortic Valve, he was required to mention that in the proposal form. As he died of heart attack and was initially suffering from heart disease, his claim was rightly rejected.

The trial court dismissed the suit, however, the learned lower appellate court accepted the appeal and directed for payment of sum insured along with benefits accruing thereon. Against the aforesaid judgment and decree of the learned lower appellate court, the appellants are before this court.

Learned counsel for the appellants submitted that once deceased-Raj Kumar Gupta had failed to mention in the proposal form that he was suffering from Bicuspid Aortic Valve disease, the same being concealment of fact, the claim made by the widow was rightly repudiated, as it was one of the important fact to be mentioned in the proposal form.

On the other hand, learned counsel for the respondent submitted that in the case in hand, all relevant information was furnished by the deceased in the proposal form. Before he was issued the policies, he was medically examined by the doctor appointed by the Corporation, who found the appellant to be medically fit and suffering from no disease. No doubt, it was found that the deceased was suffering from Bicuspid Aortic Valve disease, however, the same as such was not fatal. It was only that it was detected for the first time in the year 1980, however, he may be suffering from the same even prior thereto. Still, he was in active duty in Indian Air Force. He never remained sick and took leave from his job. He took voluntary retirement as on account of the disease, he could not fly as an Aircrew, otherwise he was fully fit for ground duty and could fly as a passenger. It was further submitted that even after the disease was detected in the year 1980 and after he had sought voluntary retirement from Indian Air Force on 1.2.1984, he remained in private employment till his death. At the time of entry into private service also, he was medically examined. During his service with private employment, the deceased never took any leave. The appellants had not led any evidence on record to show that death of late-Raj Kumar Gupta Squadron Leader was on account of disease suffered by him. In the absence thereof, repudiation of the claim pertaining to two policies was totally illegal. The learned lower appellate court had rightly decreed the suit.

Heard learned counsel for the parties and perused the paper book.

On 23.5.2014, learned counsel for the appellants sought time to have instructions. Today, learned counsel for the appellants submitted that Mr. C.S. Dhaliwal, AAO has been authorised to appear in the case in hand and suffer a statement in this appeal. He stated that the Corporation is ready and willing to pay principal sum of the policies along with interest @ 6% per annum from the date of filing of the suit. The proposal is not acceptable to the counsel for the respondent. He stated that if the entire amount due, namely, the sum insured along with all benefits accruing thereon are paid along with interest @ 6% per annum instead of 9% per annum granted by the learned lower appellate court, the offer can be accepted and not without the benefits accruing on the policies, hence, arguments of the parties are to be considered on merits.

The claim of the respondent-plaintiff is sought to be repudiated by the Corporation on the ground that at the time of filling up the proposal form, deceased-Raj Kumar Gupta Squadron Leader did not mention that he was suffering from Bicuspid Aortic Valve disease. There is no other ground to reject the claim to the respondent-plaintiff. The learned lower appellate court, while accepting the appeal filed by the respondent, has dealt with the entire issue in great detail. It has been discussed that at the time when the policies were taken by the deceased, he was examined by Dr. Ved Parkash appointed by the Corporation, who appeared as PW 6. In his statement before the court, he stated that at the time of medical examination, heart of the deceased was normal in size, position and the pulse. He further stated that heart sound was normal and there was no murmur of the heart. Further, no doubt Raj Kumar Gupta Squadron Leader died of heart attack, however, the lower appellate court has noticed that the appellants had not been able to link death of Raj Kumar Gupta with the disease suffered by him. Medical literature on that account has been discussed in detail giving the idea of the disease and to what it can lead to.

In the case in hand, as the facts have come on record, it was for the first time in the year 1980 that the deceased was diagnosed with Bicuspid Aortic Valve disease. He remained on active duty in Indian Air Force till 1.2.1984, the date from which he sought voluntary retirement. It has been mentioned in the medical record of the deceased at the time of voluntary retirement that though he was suffering from Bicuspid Aortic Valve disease, but the same has no effect on longevity of life. The claim made by the appellants that the deceased was compulsorily retired on medical ground was found to be incorrect on appreciation of evidence on record. The deceased was granted voluntary retirement under medical category A4 G2 (P). As per rules of Air Force, medical category A4 means that the officer cannot fly as an aircrew but he can fly as a passenger. Medical category G2 means that the officer is fit for all ground duties in any part of the world, but slightly below G1 category. The officer was found to be fit enduring physical and mental stress. The fact remains that besides serving four years on active duty in Indian Air Force, after the deceased retired therefrom, immediately thereafter he was employed with M/s. Varinder Agro Chemical Ltd., Ludhiana and remained in active service from 1.1.1985 till 16.5.1990. He was employed as Manager (Personnel) (Administration). He ultimately died on 28.8.1990. Even at the time of entry into private service, he was medically examined and found to be fit. Evidence was produced by the respondent-plaintiff claiming that the deceased never availed of any leave even during his service career with private employer. It was further proved on record that even in the year 1988, all senior employees working with M/s. Varinder Agro Chemical Ltd., Ludhiana were got examined from CMC, Ludhiana, where also the deceased was found to be medically fit. The aforesaid testimony could not be shaken by the appellants in any manner either during the cross-examination of the witnesses or in the evidence led by them.

Another fact, which cannot be lost sight of is that there was no intention on the part of the deceased to take the policies as he was suffering from fatal disease. The policies are merely of Rs. 1,00,000/- which is not a large sum and can be said to be normal considering his status in life. Considering the aforesaid facts, in my opinion, repudiation of the claim pertaining to the insurance policies taken by the deceased in the years 1987 and 1988 was rightly found to be illegal by the learned lower appellate court. There is no error in the impugned judgment. No substantial question of law arises.

For the reasons mentioned above, the appeal is dismissed.