Advocate Sushila
SUPREME COURT HOLDS THAT INSURANCE CLAIM CAN BE REJECTED IF PREMIUM IS NOT PAID ON THE DUE DATE

SUPREME COURT HOLDS THAT INSURANCE CLAIM CAN BE REJECTED IF PREMIUM IS NOT PAID ON THE DUE DATE

A Two Judge Bench of the Hon’ble #SupremeCourt of India comprising of Justices Sanjiv Khanna and Bela M. Trivedi passed a #Judgment dated 29-10-2021 in the case of Life Insurance Corporation Of India And Another v. Sunita {Special Leave Petition (Civil) No. 13868 Of 2019} held that the #Insurance Claim is liable to be rejected if #premium was not paid on the due date.


In the present case, one Mr. Pradeep Kumar (Insured), the husband of the (Respondent) (original Complainant) had taken an Insurance Policy on 14-04-2021 under the Jeevan Suraksha Yojana from the Life Insurance Corporation (Appellant-Corporation). Under the said Policy a sum of Rs. 3,75,000/-was assured by the Appellant-Corporation and an additional sum of Rs. 3,75,000/- was assured in the event of death by accident. The insurance premium of the said Policy was to be paid in six months. The next premium was due to be paid on 14-10-2011 by the Insured. However, there was a default in paying the premium. On 06-03-2012 the Insured met with an accident and succumbed to the injuries on 21-03-2012. In the meantime, the due insurance premium of October, 2011, was deposited by the Insured on 09-03-2012 for reviving the Policy.

The Complainant after the death of the Insured-Husband filed a claim before the Appellant-Corporation. The Appellant paid a sum of Rs. 3,75,000/- however, did not pay the additional amount of Rs. 3,75,000/- towards the Accident claim benefit to the Complainant.

Aggrieved, the Complainant approached the District Forum and vide Judgment and Order dated 14-10-2013, the District Forum while placing reliance upon the Ready Reckoner issued by the Appellant-Corporation, allowed the said claim of the Respondent. Aggrieved by the said Order dated 14-10-2013, the Appellant-Corporation preferred an Appeal before the State Consumer Disputes Redressal Commission. The State Commission while setting aside the said Order dated 14-10-2013 passed by the District Forum, allowed the said Appeal. Thereafter, the aggrieved Complainant preferred a Revision Petition being No. 897 of 2008 under Section 21(B) of the Consumer Protection Act, 1986 (Act), before the National Consumer Dispute Redressal Commission (NCDRC) thereby challenging the Order passed by the State Commission. Vide Judgment dated 24-04-2019, the NCDRC allowed the said Revision Petition and set aside the Order passed by the State Commission.


To read more, please visit the link below:


https://theindianlawyer.in/supreme-court-holds-that-insurance-claim-can-be-rejected-if-premium-is-not-paid-on-the-due-date/


#supremecourt #insurance #claim #premium #due

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