LAW FOR ALL

When policy is only for Graduates - an 8th standard person can not apply for it - misstatement as B.Com., comes to material suppression- No claim =“Whether the insured is bound to explain the correct educational qualifications before the Insurance Company, when that insurance is meant only for Graduates?”. - yes = It is thus clear that there are two categories, one for Graduates and the other for Non-Graduates. The mis-statement made by the deceased go to the root of the case and violate the basic principle of ‘utmost faith’, which obviously forms the corner stone of any insurance contract. Due to this mis-statement, the complainant is not entitled to any claim. The Hon’ble Apex Court, in the case of Satwant Kaur Sandhu Vs. New India Assurance Co. Ltd., reported in IV (2009) CPJ 8 (SC), was pleased to hold that : “The term “material fact” is not defined in the Act and, in therefore, it has been understood and explained by the Courts in general terms to mean as any fact which would influence the judgment of a prudent insurer in fixing the premium or determining whether he would like to accept the risk. Any fact which goes to the root of the Contract of Insurance and has a bearing on the risk involved would be “material”. Nonetheless, it is a contract of insurance falling in the category of contract ‘uberrimae fidei’, meaning, ‘a contract of utmost good faith, on the part of the assured’. Thus, it needs little emphasis that when an information on a specific aspect is asked for in the proposal form, an assured is under a solemn obligation to make a true and full disclosure of the information on the subject which is within his knowledge. It is not for the proposer to determine whether the information sought for is material for the purpose of the policy or not. Of course, obligation to disclose extends only to facts which are known to the applicant and not to what he ought to have known. The obligation to disclose necessarily depends upon the knowledge one possesses. - As stated in Pollock and Mulla’s Indian Contract and Specific Relief Acts, any fact, the knowledge or ignorance of which would materially influence an insurer in making the contract or in estimating the degree and character of risks in fixing the rate of premium, is a material fact”. - In view of this discussion, we allow the revision petition, set aside the orders rendered by both the fora below and dismiss the complaint. No costs.