This appeal takes an exception to an order of dismissal of consumer complaint no.403/2008, Smt.Smita Madhav Patki v/s.National Insurance Co. Ltd. and others, passed by District Consumer Forum, Solapur. Appeal is preferred by an original complainant.

It is the case of appellant/original complainant that her husband late Madhav Patki was a Junior Engineer with erstwhile Maharashtra State Electricity Board.  He was beneficiary of a Group Insurance Janata Personal Accident policy issued by respondent/original O.P., which was taken in the name of Maharashtra State Electricity Board Staff Welfare Fund.  When the said policy was in force, late Madhav met with an accident on 09/11/1999 and died. Through the employer insurance claim was made under the above referred policy.  However, said employer did not forward the claim application to the Insurance company and, therefore, complainant herself lodged the claim, which stood repudiated in the month of October 2007 and, therefore, consumer complaint was filed. It stood rejected being belated claim and also since Maharashtra State Electricity Board Staff Welfare Fund was not made a party.  Insurance company repudiated the claim stating that it was a stale action and that since the claim was not preferred within stipulated time as per the policy terms and conditions, the same stood abandoned and not recoverable. 

Heard Mr.K.N.Lokhande-Advocate for the appellant and Mr.S.Mhatre-Advocate for respondent.

In the instant case, referring to the consumer complaint and the affidavit of complainant Smt.Smita supporting the contents of the consumer complaint, it could be seen that nowhere complainant submitted that she was not aware of the Group Insurance policy in question.  She in fact claimed that she had lodged the claim after death of her husband being the beneficiary through Executive Engineer, Pandharpur (Rachana) division.  However, her such claim application was not forwarded to the Insurance company.  Thereafter, said Pandharpur division was merged in Akluj division and since that Akluj division also not forwarded her claim application, she herself made an application to the Insurance company.  From the repudiation letter dated 03/12/2007, it is reflected that her such application was made on 26/12/2007 after a lapse of almost 8 years after the death of her husband. Under the circumstances, it is not the case of the complainant that since she was not aware of the Group insurance policy, the claim was made belated.

Cause of action for the insurance claim in question but arose on the death of late Madhav Patki and not on the date of repudiation of the insurance claim as alleged by the complainant. A useful reference can be made to the decision of the apex court in the matter of Kandimalla Raghavaiah & Co. v/s. National Insurance Co.Ltd. and other 2009 CTJ 951 (SC)(CP).  Insurance claim, thus, is preferred beyond the period of two years from the date of cause of action, supra and as such barred by limitation.  There is no application for condonation of delay, admittedly, made.

Janata Personal Group Accident policy is on record.  Amongst other terms it also submitted as under:-

          “It is also hereby further expressely agreed and declared that if the Company shall disclaim liability to the insured for any claim here under and such claim shall not within 12 calendar months from the date of such …have been made the subject of a suit in a Court of Law then the claim shall for all purpose be deemed …been abandoned and shall not thereafter be recoverable hereunder.”

As held by the apex court in the matter of Himachal Pradesh State Forest Co. Ltd. v/s. United India Insurance Co.Ltd., (2009) 2 SCC 252, though above referred clause in view of section 28 of the Contract Act will not be acted upon for the curtailment of the period of limitation still the later part of it which refers to extension of the right itself unless exercised within specified time can be enforced.  Therefore, since the claim was not made within 12 calendar months from the date of happening, the claim shall for all purposes be deemed to have been abandoned and is not recoverable after the expiry of the said period.

For the above said reasons, we find that no fault can be found with the impugned order resulting into dismissal of consumer complaint. Holding accordingly, we pass the following order:-

                                                ORDER

Appeal stands dismissed.

In the given circumstances parties to bear their own costs.

Copies of the order be furnished to the parties.