Document Fragment View

Matching Fragments

V.N. KHARE, J.:

The appellant herein and his wife Smt. Alka Bose, took out a mediclaim insurance policy from the respondent United India Insurance Company (hereinafter referred to as insurance company) on December 14, 1990. In July 1991, Smt. Alka Bose fell ill and as per advice of the doctor she was admitted to a hospital on August 14, 1991. She paid Rs.8,243/- towards the charges for her treatment to the hospital. On August 30, 1991 the appellant lodged a claim for Rs.8,243/- with the insurance company along with necessary papers. Despite repeated requests the claim was not honored, with the result the appellant approached the District Consumer Grievance Redressal Forum (District Forum Calcutta) but the said complaint was rejected. On appeal before the State Commission, the order of the District Forum was set aside and direction was issued to the respondent insurance company to pay to the appellant a sum of Rs.8,243/-. The insurance company thereafter went in revision before the National Consumer Redressal Commission which allowed the revision and set aside the order of the State Commission. Aggrieved, the appellant filed an appeal before this Court. On May 10, 1995 this Court allowed the appeal with costs which was quantified at Rs.20,000/-. Despite the order of this Court, the payment was not made with the result the appellant had to take further proceedings. While the said litigation was going on, appellants policy fell due for renewal. Under such circumstances, the appellant on 24.1.1996, sent a letter along with a cheque of Rs.1,796/- to the respondent insurance company requesting for renewal of his existing mediclaim policy. On 7.3.1996, the insurance company declined to renew the mediclaim policy as per the advice of the competent authority of the company. Under the aforesaid circumstances, the appellant filed a writ petition under Article 226 of the Constitution before the Calcutta High Court challenging the order passed by the respondent insurance company refusing to renew the mediclaim policy. The said writ petition was allowed and the order refusing to renew the policy was set aside and a direction was issued to the insurance company to renew the mediclaim policy earlier taken out by the appellant. Aggrieved, the respondent insurance company filed an appeal against the judgment of learned Single Judge. The Division Bench of the Calcutta High Court while agreeing with the view taken by the learned Single Judge substantially dismissed the appeal. Yet, the High Court directed the appellant to take fresh mediclaim policy, as the renewal of mediclaim policy cannot be granted with retrospective effect, as the period for which renewal was required has already expired. It is against the said part of the order the appellant has preferred this appeal.
The appellant, Biman Krishna Bose, has appeared in person. He argued that the High Court even after setting aside the order refusing to renew the policy, was not justified in directing the appellant to take fresh mediclaim policy. According to the appellant, by the said order of the High Court he has been placed at a great disadvantageous position. The appellant referred to the exclusion clause of the policy taken out by him. Relevant clauses 2.1 and 2.1.14 of the mediclaim policy run as under:

Coming to the next question whether the appellants policy was required to be renewed with effect from the date when it fell due for renewal. The view taken by the High Court is that an insurance policy cannot be renewed for the period which has already expired. It is not disputed that original mediclaim policy taken out by the appellant provided for its renewal. It is also not disputed that the appellant applied for renewal of the insurance policy well in time and sent a cheque towards its premium. The respondent company has not challenged the order of the High Court setting aside the order refusing to renew the mediclaim policy of the insured. Under such facts and circumstances of the case, whether the appellant can be directed to take a fresh mediclaim policy on the premise that no renewal of the policy can be ordered for the expired period.

For the aforesaid reasons, we are of the view that the High Court committed error in directing the appellant to take fresh medicalim policy even after setting aside the order of refusal to renew the mediclaim policy by the insurance company. The order passed by the High Court to that extent is not sustainable in law. We, therefore, set aside the order of the High Court to the extent it directed the appellant to take a fresh mediclaim policy. We, further direct that if the appellant applies for renewal of his mediclaim policy for the expired period and pays the premium, the respondent company shall renew the said mediclaim policy forthwith.