Bombay High Court
Life Insurance Corporation Of India vs Smt. Subhadra Domari Bhele on 20 March, 1999
Equivalent citations: 1999(4)BOMCR64
ORDER
A.A. Halbe, President.
1. This appeal by the Life Insurance Corporation of India is directed against the order of the District Forum, Wardha in Complaint No. 17/96, requiring the appellant-Insurance Corporation to pay the amount arising out of Policy No. 971957930 commencing from 28-3-1992 for Rs. 50,000/- in respect of the deceased Bhimrao Domaji Bhele. The mother who was the nominee of this policy, preferred the complaint on account of the death of her son Bhimrao on 11-11-94. The claim of the complainant is that the complainant was nominated by her son, who was entitled to this policy amount on account of the death of her son. The order has been challenged by the L.I.C. on the ground that the insured had concealed the important fact that the insurer was suffering from Pulmonary T.B. in the proposal form and this was the material suppression. The District Forum found that the death and suffering of T.B. has no nexus and was therefore pleased to award the claim in favour of the nominee. We find that in the proposal form in regard to personal history, the deceased had indicated that the deceased did not suffer from Diabetes, Tuberculosis, High Blood Pressure, Cancer, Epilepsy, Hernia, Hydrocele, Leprosy or any other disease at any time, whereas the certificate of T.B. Medical Board, Wardha shows that the deceased was suffering from Pulmonary Tuberculosis and was advised rest and treatment for 2 months i.e. from 1-11-89 to 30-12-89. This would clearly mean that in the proposal form the deceased had concealed this fact which is very material. The proposal does not indicate the period within which the ailment has to be suffered. It clearly spells out that whether the deceased had ever during the course of his entire life suffered from T.B. We are, therefore unable to agree with the finding of the District Forum that there was no nexus between the death and Pulmonary Tuberculosis.
2. The National Commission in the case of Ajay Prakash Mittal v. Life Insurance Corporation of India, reported in 1997(5) C.T.J. 749 (C.P.) has clearly observed that if the material fact is suppressed, the claim could not be awarded. The question of nexus between the ailment and death is not material. If the column specifically requires that the deceased should mention about the T.B., his death on account of other reason is not material. In this case, we find that this fact has been suppressed. The same has not been rightly appreciated by the District Forum. We are, therefore, left with no option but to allow the appeal. Accordingly we pass the following order:
ORDER
3. "The appeal is allowed. The order of the District Forum is set aside. The complaint is dismissed. The amount deposited by the L.I.C. shall be forthwith refunded to the appellant- L.I.C. There should be no order as to costs."
4. Appeal allowed.