Reliance Life Insurance Company Ltd. and Ors. vs. Jaya Wadhwani (Neutral Citation: 2024 INSC 10) - (Supreme Court) (03 Jan 2024)

Date of issuance of the policy would be the relevant date and not the date of proposal or the date of issuance of the receipt

MANU/SC/0006/2024

Consumer

The challenge in present appeals is to the orders passed by the National Consumer Disputes Redressal Commission, whereby the revision filed by the Appellant has since been dismissed and the orders passed by the District Forum as also the State Commission have been affirmed holding that, the Appellant is liable to pay the amount of the sum assured on the death of the assured. The District Consumer Disputes Redressal Forum, the State Consumer Disputes Redressal Commission and the National Commission have proceeded on the basis that the date of issuance of the initial deposit receipt of premium is the date of commencement of the Policy and have accordingly allowed the complaint filed by the Respondent.

In the appeal of Usha Soni, the date of submission of proposal form by the life assured is 26th September, 2012. The date of issue of policy as also the date of commencement of policy was 28th September, 2012. The date of next premium due was 28th September, 2013. As the next premium was not paid, the policy lapsed. The assured paid the next premium on 25th February, 2014 and the lapsed policy was reinstated from that date. On 3rd June, 2014, the life assured committed suicide.

Once it is mentioned in the Policy that the 12 months period is to commence from the date of the issuance of the policy or the date of any reinstatement of the policy, the reinstatement aspect ought to have been considered. The date of reinstatement of the policy is clearly stated to be 25th February, 2014 and that is also the date of commencement of policy, both the dates being the same. Thus, the date of incidence of suicide being 3rd June, 2014, it was well within 12 months.

Now, with regard to the case of Jaya Wadhwani, the proposal form, was submitted on 14th July, 2012 with respect to the cheque dated 13th July, 2012 of the premium amount wherein also it was mentioned that the receipt is issued subject to the clearance of the cheque and further that the insurance protection shall only be provided effective from the date of acceptance of the risk, which happened on 16th July, 2012, when the policy was issued and the date of commencement was notified to be the same date.14th July 2012, therefore, cannot be taken to be the date of issuance of policy. It is only the date of issue of receipt of the initial premium. The date of issue of policy being 16th July, 2012 is actually the date from which the policy commences and becomes effective.

In the present appeals, present Court does not find any such issue of back dating but the date of issuance of the policy would be the relevant date for all the purposes and not the date of proposal or the date of issuance of the receipt. The stand taken by the Appellant is approved. The impugned orders are thus liable to be set aside. Accordingly, the orders passed by the District Forum, the State Commission, and the National Commission are set aside. Appeals allowed.

Tags : SUM ASSURED LIABILITY PAYMENT