" The learned counsel for the appellants submits that <br /> this medical record has proved that Rahul Sehgal was <br /> alcoholic for the last 15 years, and therefore, this habit of <br /> insured led to the disease and had become a cause of <br /> his death This submission has been considered it is a <br /> far fetched argument. Taking liquor is not a material fact<br /> Moreover, taking liquor is not a disease. Almost everybody<br /> takes liquor with few exceptions. Again, it varies<br /> whether one takes liquor in large quantity or takes only<br /> small dose like medicine whether one takes <br /> regularly or occasionally. This report does not <br /> clarify these details. If consumption of liquor <br /> was a disease, the insured would not have<br /> survived for 15 years. He would have died prior <br /> to filling of revival form Therefore, taking alcohol <br /> was not a material fact. The suppression of which<br /> can entitle the appellants to repudiate the claim."<br /> No doubt, the settled law is that the insured is bound to disclosed the material facts to the Insurance Company at the time of filling up the proposal form and Insurance Companies are entitled to take the benefit of Section 45 of the Insurance Act. Section 45 postulates repudiation of such policy within a period of two years from the date of effecting of the policy on the ground of suppression of material facts such as :<br /> a) Suppression must be on a material matter or must suppress such a fact which was material to be disclosed.<br /> b) Suppression must be fraudulently made by the policy holder <br /> c) Proposer must be knowing that the suppressed fact was material and it was required to be disclosed for taking the insurance policy and only the suppression of material facts can entitle the insurer to repudiate the claim.<br /> The consumption of liquor by Rajinder Kumar Mehan and his disease of Cirrosis, ALD Portal Hypertension, hepatitis etc. are not material facts the suppression of which entitle the insurer to repudiate the claim.<br /> In the ultimate analysis of aforesaid discussion, we accept the complaint and direct the opposite party LIC to pay to the complainant sum asured for Rs.1,00,000/- alongwith interest @ 9% p.a. from the date of repudiation till realisation and further award Rs.5000/- as damages for deficiency in service on the part of opposite parties and cost of litigation to the tune of Rs.2000/- payable to the complainant by the opposite parties within one month from the receipt of copy of this order.<br /> Let certified copies of judgment rendered be supplied/despatched to the parties without any unnecessary delay and thereafter file be consigned to record room.<br /> <br /> Announced : ( Shashi Narang ) (Gulshan Prashar ) <br /> 4.12.2008 Presiding Member Member <br /> <br /> <br /> <br /> <br /> <br /> <br />