Page 17 - Suri’s - NCDRC ON LIFE INSURANCE 2017 V1.3

Suri’s - NCDRC ON LIFE INSURANCE 2017 17

(i) Material concealment – In the Proposal form the deceased insured inter-alia
maintained that he had not been admitted to any hospital or Nursing home for
general observation, treatment or operation - He had also denied having taken
alcoholic drinks - Statement of wife of the deceased insured wherein she inter-
alia stated that her husband was a habitual drinker even before her marriage -
Statement recorded on 19.9.2005 would show that the marriage happened about
five years ago, meaning thereby it happened sometime in the year 2010 - There-
fore, the deceased insured obviously made a false statement in the proposal form
when he denied consuming liquor.
Held,
7. On merits, the learned counsel for the petitioner Corporation has drawn my
attention to the proposal form dated 16.12.2004, wherein the deceased insured inter-
alia maintained that he had not been admitted to any hospital or Nursing home for gen-
eral observation, treatment or operation. He had also denied having taken alcoholic
drinks. He has drawn my attention to the statement of Smt. A.R. Sudha, wife of the
deceased insured wherein she inter-alia stated that her husband was a habitual drinker
even before her marriage. The statement recorded on 19.9.2005 would show that the
marriage happened about five years ago, meaning thereby it happened sometime in the
year 2010. Therefore, the deceased insured obviously made a false statement in the
proposal form when he denied consuming liquor.
9. The learned counsel for the petitioner has also drawn my attention to addi-
tional affidavit filed by the petitioner Corporation. In the said affidavit, it is stated that
as per the new business underwriting guidelines which were being followed during the
relevant period, in the case of an occasional consumer consuming alcohol, the would
have obtained physicians report, besides investigations such as SGOT, SGPT and
GGTP. All the aforesaid investigations pertain to the state of health of the liver. Had
the petitioner disclosed in the proposal form that he had been taking liquor he would
have been subjected to physical examination by a physician and would also have been
investigated for ascertaining the state of his liver by undergoing investigations such as
SGOT, SGTP and GGTP. It is therefore evident that the deceased had made a material
concealment from the petitioner Corporation with respect to the state of his health
which influenced advantage of the insurer on the question as to whether the proposal
for insurance should be accepted or not. On this ground also, the repudiation of the
claim was fully justified.

(ii) Material concealment – In the Proposal form the deceased insured inter-
alia maintained that he had not been admitted to any hospital or Nursing home
for general observation, treatment or operation - The record from National Insti-
tute of Mental Health and Neuro Sciences Bangalore would show that the de-
ceased had sustained injury of LS spine and had taken treatment for the said in-
jury in the aforesaid hospital - Therefore, it is obvious that a false answer was
given by him in the proposal form when he denied having been admitted to any
hospital for treatment or operation – Claim rightly repudiated. (Para 8)
9. The learned counsel for the petitioner has also drawn my attention to addi-
tional affidavit filed by the petitioner Corporation. In the said affidavit, it is stated that
as per the new business underwriting guidelines which were being followed during the

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