Life Insurance Corporation of India and Ors.
vs.
Sunita Life Insurance Corporation of India and Ors.
(2022)1SCC68
Policy type- Life Insurance Policy under the JeevanSurakshaYojana
The accident claim benefit as per the terms of the insurance policy was payable only if the policy was in force on the date of the accident. In this case, the policy had lapsed at the time of accident and the premium was sought to be paid three days after occurrence of accident. However, the complainant contended that the premium was paid along with late fee charges and therefore, the policy had stood revived before the death of the complainant’s husband. In rejecting the claim of the complainant, the Supreme Court relied upon its own decision in Vikram Greentech (I) Ltd. v. New India Assurance Co. Ltd. (2009) 5 SCC 599. In that case, the Court had observed that in a contract of insurance, there is requirement of uberrima fides i.e. good faith on the part of the insured. The four essentials of a contract of insurance are: (I) the definition of the risk, (ii) the duration of the risk, (iii) the premium, and (iv) the amount of insurance. Upon issuance of the insurance policy, the insurer undertakes to indemnify the loss suffered by the insured on account of the risks covered by the insurance policy. Accordingly, the Court held that terms of insurance policy have to be strictly construed, and it is not permissible to rewrite the contract while interpreting the terms of the Policy.
