State Consumer Disputes Redressal Commission
Life Insurance Corporation vs Smti Nira Bhattacharjee on 21 June, 1997
IN THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION IN THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION MEGHALAYA, SHILLONG C.A. NO.9(M) OF 1996 Life Insurance Corporation. ... Appellant Shillong -Vs- Smti Nira Bhattacharjee ..................Respondents B E F O R E MR JUSTICE D.N.CHOUDHURY,PRESIDENT THE LEARNED MEMBER SHRI R.S.LYNGDOH AND SMTI. T.PHANBHUH For the Appellant Mr.B.P.Dutta Respondent Msr. Minati Sarma Date of Order 21.06.97 ORDER
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An appeal is directed Against the order dated 4-10-96 passed by the District Forum, East Khasi Hills, Shillong in C.P. Case No. 53(S)94 directing the insurance Company to release the assured sum of Rs.50,000/- along with bonus accrued from the date of the Insurance Policy till the date of payment together with interest at the rate of 12% per annum from the date of death of the policy holder within a period of 2 months from the date of the order, failing with another 18% interest will be accrued till final payment.
The basic facts Dr. Gukul Chandra Bhattcharjee the respondent of the Complaint Appeal assured his life with the appellant for Rs.50,000/- and accordingly the proposal was made on payment of necessary premium and the said proposal was accepted by the Insurance Company on 28-9-87. The policy holder/assured admitted hospital on 11-10-87 as an emergency case and died on 12-10-87. The Complainant moved the authority by way of a complaint petition for settlement of her claim which was finally turned down by the appellant on 10-5-92 by repudiating the liability of the Insurance Company. Hence the complaint before the District Forum, East Khasi Hills, Shillong.
The Insurance Company in its show cause stated that since assured did not disclose the fact that the deceased was suffering from T.B. while assuring his life and assured himself by suppressing the said fact and insured his life , the Insurance Company repudiated his claim. The Insurance Company also raised the plea of limitation of the Complaint Petition before the Tribunal. The District Forum, East Khasi Hills, Shillong on consideration of the materials on record rejected the plea of limitation and held that the complaint was not barred by limitation and also held that the Insurance Company on accepting the proposal of the assured on 28-9-87 on completion of all formalities could not come around and repudiate the claim after about five years without establishing fraud. The learned District Forum, East Khasi Hills, Shillong took into consideration the provisions containing in Section 45 of the Insurance Act, 1938 and held that the onus propendi of the Insurance Company was not lawfully discharged and accordingly allowed the claim of the complainant.
We have given our anxious consideration on the matter but do not find any discernable ground to differ from the conclusion given by the learned District Forum, East Khasi Hills, Shillong. The Appellant failed to establish that the assured committed any fraud on the company. In our opinion the Claim Petition was filed within the period of limitation. We do not find any good reason to contrary view.
Mr.B.P. Dutta, learned counsel appearing on behalf of the appellant also questioned the awarding of the interest from the date of the death.
In our opinion the Insurance Company ought to have disposed of the claim of the complainant at least after two months from the formal claim of the complainant which was made on 2-9-89 and the said claim at any rate ought to have disposed within two months from the date of receipt of the claim. Therefore the Insurance Company was liable for the payment of interest on or after 3-11-89 and not from the date of the death of the assured i.e. from 12-10-1987. We therefore, set aside the direction for payment of interest at the rate of 12% per annum from the date of death and direct the Insurance Company to release the assured sum of Rs.50,000/-(fifty thousand) along with bonuses accrued from the date of Insurance Policy together with the interest at the rate of Rs.12% per annum from 3-11-89 within two months from the date of orders, failing which another 18% interest will accrue till the final payment.
The appeal is partly allowed.
No costs.
Member President