TMI Blog1998 (10) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the policy is the date on which the policy was issued or the date on which the risk under the policy has commenced. The aforesaid question arises under the following circumstances. The respondent took a policy of life Insurance on the life of his minor daughter Kumari Rajan Anand. The proposal was submitted on 25.3.90 and the policy was issued on 31.3.90. The policy contained a Clause, Clause 4B which reeds as follows : Claused 4-B Notwithstanding anything mentioned to the contrary, it is hereby declared and agreed that in the event of death of Life assured occuring as a result of intentional selfinjury, suicide or attempted suicide, insanity, accident other than an accident in a public place or murder at any time on or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89 and the assured having committed suicide on 15.11.92, Clause 4-B will not apply and therefore, the entire sum for which the life of the minor girl had been insured should be paid to the respondent together with the Bonus and interest which accrued due. The appellant took the stand before the District Forum contending that though risk under the policy has commenced w.e.f. 10.5.89 but the date of the policy is 31.3.90 and therefore, death of the assured having occurred before expiry of three years from the date of the policy, the liability of the Corporation shall be limited to the sum equal to the total amount of premium paid under the policy as per Clause 4-B of the terms of policy. The District Forum however rejected the contention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted back, the proviso in Clause 4-B will not operate and such a situation would not have been intended by the parties to the agreement. According to Mr. Salve, while construing a policy of insurance which is nothing but an agreement between the parties the commercial practice cannot be ignored and, therefore, the dating back of the policy being merely to confer certain in tax to the insured, the date of the dating back cannot be held to be the date of the policy itself. Mr. Chadha, the learned counsel appearing for the respondent on the other hand submitted that the insured having being called upon to indicate as to whether the policy should be dated back and if so, to indicate the date with effect form which such dating back is ti opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions conveying one and the same meaning. Bearing in mind the aforesaid principle of construction, if Clause 4-B of the terms of policy is scrutinized, it become crystal clear that the date on which the risk under the policy has commenced is different from the date of the policy. In the case in hand undoubtedly the date on which the risk under the policy has commenced is 10.5.89 but the date of the policy is 31st of March, 19990 on which date the policy had been issued. Even though the Insurer had given the option to the Insured indicated that the policy should be dated back to 10.5.89 and did pay the premium for that period, thereby the risk under the policy can be said to have commenced with effect from 10.5.89 but the date of the policy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l play if the expression the date of the policy is interpreted to mean the date on which the policy was issued and not the date on which the risk under the policy has commenced. In the aforesaid premises we are of the considered opinion that under Clause 4-B of the policy the date of the policy is the date on which the policy had been issued and not the date on which the risk under the policy had commenced by way of allowing dated back. In view of our aforesaid construction to Clause 4-B, in the case in hand the respondent in law would be entitled to only the sum equal to the total amount of premium paid under the policy without any interest inasmuch as the death of the life assured has occurred before the expiry of three years from the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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