Bhumikaben N. Modi (Mrs.) & Ors. vs. Life Insurance Corporation of India (SC)

Life Insurance–Repudiation of claim–Proposal was submitted on 06.07.1996 and the cheque towards the premium was given–Policy was allotted–Thereafter, on 14.07.1996, deceased died due to electric shock–Insurance Company blocked the policy on 15.07.1996–Thereafter, the claim was rejected–First premium was accepted and a duly signed receipt noting the policy was issued on 09.07.1996–Receipt of premium contains the number of policy and the next premium was shown in it as 28.12.1996–Other aspects were also containing therein and these assume relevance–There is no case of the respondent that the cheque was dishonoured–Cheque amount was received prior to death of deceased, is not in dispute–Circumstances of the case reveal that the proposal was accepted–Held, there was no reason for National Commission to upturn the concurrent orders and to order for the dismissal of the complaint.