Petitioner insurance company was the opposite party before the District Forum. Disputed involved between the parties is that the respondent/complainant was working as Sanitary Inspector in the Municipal Corporation, Ongolge. He took a policy from the petitioner insurance company, premium of which was used to be deducted directly from his salary. After his retirement, he was not in a position to pay the premium and he requested the petitioner to refund the amount of premium paid by him. The petitioner refused to do so. Aggrieved by this, he filed a complaint before the District Forum. District Forum allowed the complaint vide its order dated 27.12.2002 and directed the petitioner to refund the sum of Rs.24,480/- paid towards Policy No.670433222. The amount was to be paid within a period of one month from the date of passing of the order failing which the petitioner was to pay interest at the rate of 18% after expiry of the stipulated period till the date of realization. Aggrieved by this, the petitioner filed an appeal before the State Commission. Case of the petitioner before the State Commission was that as per Condition No.4, the insured could claim the paid up amount only if he had paid premium for 3 years. In the present case, the respondent had paid the premium for 2 years and 9 months. State Commission overruled this submission by observing that Condition No.4 was not mandatory and secondly that it was not explained to the insured that he was required to pay the premium for at least 3 years before he could claim the paid up value of the policy. Being aggrieved, the petitioner has filed the present Revision Petition. Policy of insurance is in the nature of a contract and the parties are bound by the terms of the contract. Condition No.4, under the circumstances, would be binding on both the parties. As per Condition No.4, the paid up value of the policy could be refunded to the insured only if he had paid the premium for 3 years. Since in this case, the respondent had not paid the premium for 3 years, he was not entitled to the refund of the paid up value of the policy. Finding recorded by the State Commission, under the circumstances, cannot be sustained and the same is set aside. Counsel for the respondent states that the respondent has already been paid the sum of Rs.24,480/-. If that be so, then the same be not recovered causing undue hardship to the respondent. This direction is as per law laid down by the Supreme Court. Revision Petition stands disposed of in above terms.
......................JASHOK BHANPRESIDENT
......................B.K. TAIMNIMEMBER | | 
