Life Insurance Corporation Of India Northern Zonal Office vs GANESH LAL

THIS revision petition has been filed by the petitioner/OP against the order dated 27.11.2007 passed by the Rajasthan State Consumer Disputes Redressal Commission, Jaipur (in short, ''the State Commission '') in Appeal No. 1503 of 2001 - LIC Vs. Ganesh Lal by which, appeal filed by the petitioner was dismissed.

BRIEF facts of the case are that the Complainant No.1 / Respondent obtained joint policy of Rs.50,000/- in his name along with his wife Mrs. Ram Kanya Devi from OP/Petitioner on 28.3.1992. As per terms of policy, on death of anyone, survivor was to receive amount payable under the policy. Mrs. Ram Kanya Devi wife of Complainant No. 1 and mother of Complainant No. 2 to 4 died on 28.8.1994. Claim preferred by the Complainant No. 1 was repudiated by OP. Complainants alleging deficiency on the part of OP filed complaint before District Forum. OP contested complaint and submitted that, as deceased was suffering from mental illness and this fact was suppressed while taking policy, OP has not committed any error in repudiating claim; hence, complaint be dismissed. Learned District Forum after hearing both the parties allowed complaint and directed OP to pay the amount of policy with 12% p.a. interest. Appeal filed by the petitioner was dismissed by learned State Commission vide impugned order against which, this revision petition has been filed. Heard learned Counsel for the parties and perused record.

LEARNED Counsel for the petitioner submitted that while taking policy, material facts regarding mental diseases were suppressed by Mrs. Ram Kanya Devi. It was further submitted that as the insured committed suicide within 3 years of taking policy, complainants are entitled to get only refund of payment of premium and learned State Commission has committed error in dismissing appeal and learned District Forum committed error in allowing complaint; hence, petition be accepted and impugned order be set aside. On the other hand, learned Counsel for the respondent submitted that order passed by learned State Commission is in accordance with law, which does not call for any interference; hence, revision petition be dismissed.

PERUSAL of record reveals that deceased Mrs. Ram Kanya Devi committed suicide. Learned State Commission has observed in paragraph 10 as under: "10. There is also no dispute on the point that since the deceased had committed suicide, therefore, Mug FIR bearing no.31/94 u/s 174 was registered with the police station city Kotwali, Bhilwara in which police had come to the conclusion that her mental condition was not good, therefore, she had committed suicide ".

Thus, it becomes clear that insured Mrs. Ram Kanya Devi committed suicide on 28.8.1994. Perusal of record further reveals that proposal for taking Insurance Policy was made on 24.3.1992 and policy was issued on 24.11.1992, whereas suicide was committed on 28.8.1994 meaning thereby, suicide was committed within a period of 3 years from taking Policy. Learned counsel for the petitioner has drawn our attention towards Resolution No. 4 (b) according to which, in case of suicide by a female within 3 years of taking policy, the Insurance Company is liable to refund only the premium paid by the insured without interest. Deceased Mrs. Ram Kanya Devi has signed Resolution 4 (b) which is binding on the deceased and the complainants and in such circumstances, complainants are entitled to receive only premium paid towards this policy and are not entitled to policy amount. Learned counsel for the petitioner has also placed reliance on (1998) 7 SCC 348 - Life Insurance Corpn. of India Vs. DharamVir Anand in which, it was held that Clause 4 (b) is binding on the parties and if death by suicide occurs within a period of 3 years from the date of policy, liability of insurer is limited, as provided under Clause 4 (b). Thus, it becomes clear that, as insured Mrs. Ram Kanya committed suicide within a period of 3 years from the date of policy, complainants are entitled only to the refund of premium paid towards policy and are not entitled to receive policy amount and learned State Commission has committed error in dismissing appeal and learned District Forum has committed error in allowing complaint.

LEARNED Counsel for the petitioner further submitted that record reveals that Mrs. Ram Kanya suppressed material facts regarding her mental sickness and treatment and on this count also, complainants are not entitled to any compensation. We need not to deal this aspect as OP/appellant is bound to refund only the premium amount received from Mrs. Ram Kanya without interest.

CONSEQUENTLY , revision petition filed by the petitioner is partly allowed and impugned order dated 27.11.2007 passed by learned State Commission in Appeal No. 1503/2001 is set aside and order of District Forum dated 4.10.2001 allowing complaint is modified and petitioner/OP is directed to refund amount of premium received from deceased against this policy with 12% p.a. interest from 30.4.1996, the date of repudiation of claim till realization.