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ORIGINAL JURISDICTION - Orissa High Court

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2010 ( I ) ILR-CUT- 289<br />

B.P.DAS,J & S.C.PARIJA,J.<br />

ANUPAMA BEHERA & ORS. -V-D.M.,L.I.C. OF INDIA,CUTTACK & ANR.*<br />

JANUARY 29,2010.<br />

INSURANCE ACT, 1938 (ACT NO.4 OF 1938) – SEC.45.<br />

Repudiation of claim – Test to determine – If the facts not<br />

disclosed in the proposal form has any bearing on the risk undertaken<br />

by the insurer then the same can be construed as a material fact for<br />

repudiation.<br />

In the present case the insured died on 18.06.2004 due to heart<br />

failure – No material that the insured suffered from any serious disease<br />

affecting his life expectancy prior to his taking the policies – The<br />

medical book maintained by the employer of the insured disclosed that<br />

he had complained of lower back pain in the year 1999 – Merely<br />

because the insured had not disclosed in the proposal form some<br />

minor ailments which had no material bearing on the risk undertaken<br />

by the L.I.C., the same can not be construed as fraudulent suppression<br />

of material facts so as to authorise the L.I.C. to repudiate its liability<br />

under the contract of Insurance.<br />

Held, repudiation of Insurance Policies and rejection of claim by<br />

the L.I.C. not justified.<br />

(Para 15,16,17)<br />

Case laws Referred to:-<br />

1.AIR 1962 SC 814 : ( Mithoolal Nayak -V- Life Insurance Corporation of<br />

India).<br />

2.AIR 1960 Calcutta 696 : (Rohini Nandan Goswami -V-Ocean Accident &<br />

Guarantee Corporation Ltd.).<br />

3.AIR 1961 Punjab 253 : (Lakshmi Insurance Co.Ltd.-V-Bibi Padma Wati).<br />

4.AIR 1968 Madras 324 : (Life Insurance Corporation of India -V-Janaki<br />

Ammal).<br />

5.AIR 2001 SC 549 : (Life Insurance Corporation of India & Ors.-V-Smt.Asha<br />

Goel & Anr<br />

6.AIR 2008 SC 424 : (P.J.Chacko & Anr.-V-Chairman, Life Insurance<br />

Corporation of India & Ors.)<br />

For Petitioners- M/s.J.M.Mohanty,K.C.Mishra,T.R.Mohanty,<br />

P.C.Mohaparana.<br />

For Opp.Parties – M/s.A.R.Dash, R.N.Behera & S.N.Nanda-1.<br />

*W.P.(C) NO.6994 OF 2005. In the matter of an application under Articles<br />

226 & 227 of the Constitution of India.<br />

S.C. PARIJA, J. The action of the Life Insurance Corporation of India (for<br />

short ‘L.I.C.’) in repudiating all its liabilities under Policy Nos.583852302,<br />

583851466 and 583707315, on the ground that the deceased insured had<br />

33

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