KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION VAZHUTHACAUD, THIRUVANANTHAPURAM.

APPEAL  NO: 247/2003

 JUDGMENT DATED:05-02-2011

PRESENT

JUSTICE SHRI. K.R. UDAYABHANU              :  PRESIDENT

SHRI. S. CHANDRAMOHAN NAIR                  : MEMBER

Branch Manager,

The New India Assurance Company Ltd.,

Branch Office, Perinchery Bldg.,                       : APPELLANT

Round North, Thrissur-680 001.

(By Adv.Sri.Rajan.P.Kaliyath)

          Vs.

Joy Joseph,

Kulangara House,                                               : RESPONDENT

Cherumkuzhy, asarikkad Post.

                                                            JUDGMENT

JUSTICE SHRI. K.R. UDAYABHANU:  PRESIDENT

The appellant is the opposite party/Insurance Company in OP.582/02 in the file of CDRF, Thrissur.  The appellants are under orders to treat the policy cancelled as a continuing one and also to pay Rs.2000/- as compensation and Rs.600/- as cost.

2.      The matter relates to the cancellation of the 15 year Janatha Personal Accident Insurance policy that commenced on 8/1/1999 on payment of premium of Rs.1000/- and the benefit is on death or on sustaining specified injuries the assured  sum as Rs.2,50,000/-.  The same was cancelled on 27/6/2000 invoking the condition No.5 in the policy enabling the appellant to cancel the policy by giving notice in writing and returning the last premium paid less the pro-rata part thereof.

3.      We find that the condition being a part of the contract entered into between the parties is binding.  Further the Supreme Court has upheld similar action in General Insurance Company Ltd. Vs. Chandmull Jain, 1966 ACJ267 (SC) and the National Commission in Simran Farms Ltd. Vs. United India Insurance Company Ltd. III, 2002 CPJ 359 (NC).

In the circumstances the order of the Forum cannot be sustained and the same is set aside.  The appeal is allowed.

Office will forward copy of this order to the Forum.

JUSTICE K.R. UDAYABHANU:  PRESIDENT

S. CHANDRAMOHAN NAIR : MEMBER

VL.