AI Structured Summary
Not yet generated for this judgment
Judgment
- THIS appeal is directed against the order passed by the District Forum in O.P. No. 271/92 on the file of District Forum, Kottayam. The opposite party is the appellant.
THE complainant had taken 2 Life Insurance policies from the opposite party commencing from 22-9-86 for a sum assured of Rs. 40,000/- and had paid a sum of Rs. 5,018/- being two half yearly installments, i.e., towards the premia due on 22-9-1986 and 22-3-1987 respectively. THE complainant could not pay the premium thereafter due to financial problems, In the complaint, the complainant has claimed refund of the premium paid. The opposite party filed version contending that the claim was barred by limitation and in view of Section 113 of the Insurance Act, no claim for the amount paid could be made in (the instant case since the complainant did not pay the premium for a minimum period of 3 consecutive years.
The District Forum took the view that since the policy was sent only after the first premium was paid it cannot be said that the complainant is aware of this provision and therefore the provision cannot find the complainant. In that view it held that complainant is entitled to get Rs. 2,509/- with interest at the rate of 12% We are unable to sustain the order passed by the District Forum. Section 113 is a provision the operation of which is not dependent on the knowledge of the insured. Clause IV of the Insurance policy also contains a provision regarding the payment of surrender value. It also states that if premium was not paid continuously for a minimum period of 3 years the policy holder is not entitled to get surrender value. In the circumstances order passed the District Forum is unsustainable. We allow the appeal set-aside the order of the District Forum and dismiss the complaint. In the circumstances of the case we direct the parties to bear their respective costs. Appeal allowed.