‘Onus of right info on insured, not the agent’

Mumbai: Observing that the onus of giving correct information lies with the insured and it is immaterial who fills the proposal form, the Maharashtra State Consumer Disputes Commission recently overturned a district forum order that directed an insurance company to pay Rs 2 lakh to the son of man who died in 2003.      Life Insurance Corporation of India filed an appeal against the forum order and iterated that the claim was rejected as the man had not disclosed that he had also taken another insurance policy.      Setting aside the district forum order, the commission said, "The learned district forum had failed to appreciate the facts in the right perspective and arrived at the wrong conclusion."      In April 2001, Nandkishore Agarwal had taken an insurance policy from LIC India and the sum assured was Rs 2 lakh. But Nandkishore died in April 2003. His son Ashish filed a claim which was repudiated by theinsurance company in March 2004. The company rejected the claim as Nandkishore had withheld material information while taking the policy. Considering this as deficiency in service, Ashish filed a complaint with the forum.      The insurance company contested the complaint, sating that while submitting the proposal for the policy Nandkishore had not disclosed that he had already taken another policy.      On March 1, 2011, the district forum directed the insurance company to pay an Rs 2 lakh along with interest. Aggrieved by the order, theinsurance company filed an appeal challenging it.      Ashish's counsel submitted to the commission that the proposal was filled by an agent and Nandkishore had not suppressed information. However, the commission observed, "It is not material who fills the form, it is material to give correct information and it is the responsibility of the insured. Theinsurance is a contract between parties and is based on utmost good faith."