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2024 (1) TMI 667 - SUPREME COURTLiability to pay the amount of the sum assured on the death of the assured - date from which the policy becomes effective - whether it would be the date on which the policy is issued or the date of the commencement mentioned in the policy or it would be the date of the issuance of the deposit receipt or cover note? - HELD THAT:- In the present case, period of 12 months from 16.07.2012 will complete on 15.07.2013. It would be the last day of 12 months as from the next day, i.e., 16.07.2013 the next month will start. Unfortunately, the incidence of suicide is on 15.07.2013, the last day of 12 months. The date of proposal cannot be treated to be the date of policy until and unless on the date of proposal, initial deposit as also the issuance of policy happens on the same date where, for example, the premium is paid in cash then, immediately, the policy could be issued. Merely, tendering a cheque may not be enough as till such time the cheque is encashed, the contract would not become effective. The drawer of the cheque may, at any time, after issuing, stop its payment or there may not be enough funds in the account of which the cheque is issued and there could be many other reasons for which the cheque could be returned without being encashed. Relying upon the above judgment in the case of Dharam Vir Anand [1998 (10) TMI 534 - SUPREME COURT], this Court again in the case of Life Insurance Corpn. of India vs. Mani Ram [2005 (8) TMI 747 - SUPREME COURT], reiterated the same view and held that the date of issue of policy would be the relevant date even if there was backdating as has been done in the case of Dharam Vir Anand - In the present appeals, there are no issue of back dating but the date of issuance of the policy would be the relevant date for all the purposes and not the date of proposal or the date of issuance of the receipt. In view of the above, the stand taken by the appellant is approved. The impugned orders are thus liable to be set aside. The orders passed by the District Forum, the State Commission, and the National Commission are set aside and the claims of the respondent are rejected - Appeal allowed.
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