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Report No. 112

2.2. LIC and section 45.-

In one case1 decided by the Madras High Court, where the Corporation sought to repudiate a claim, one of the learned Judges observed:

"Whenever claims are repudiated or disputes come to courts of law, the LIC should not put up fight on the pattern of ordinary litigants. But it must be on a higher plane so as to inspire confidence in the public that claims are not resisted on frivolous pleas and reckless allegations. All the relevant materials gathered by the Corporation in the course of its investigation of a particular claim shall be placed before the court to enable it to judge the truth. There shall be a frank and full disclosure of all the material evidence and no attempt should be made to suppress or withhold the same."

Other Courts have also made similar remarks.2

1. LIC v. Parvathavardhtni, AIR 1965 Mad 357.

2. Daulat Ram v. Bharat Insurance Co., AIR 1973 Del 180; LIC v. Shakuntala Bai, AIR 1975 AP 68; and V. Srinivasa Pillai v. LIC, AIR 1977 Mad 381.

Section 45 of the Insurance Act, 1938 Back

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