Case of the petitioner/complainant is that her husband had obtained a life insurance policy from the respondent for a sum of Rs.3 lakh and paid Rs.11,100/- on 22.11.1999 towards the first instalment of the policy.  He died on the intervening night of 10/11.3.2000.  Petitioner lodged a claim with the respondent insurance company, which did not settle the claim, aggrieved by which, the petitioner filed a complaint before the District Forum. 

District Forum allowed the complaint and directed the respondent to pay Rs.2 lakh to the petitioner along with interest at the rate of 12% per annum. 

Aggrieved by this, respondent filed the appeal before the State Commission, which has been allowed by the impugned order.  State Commission, relying upon the judgement of the Supreme Court in LIC of India vs. Raja Vasireddy Komalavalli Kamba & Ors. – AIR 1984 SC 1014, held that till the issuance of the policy, no binding contract comes into existence between the parties and the insurance company is not liable to pay the sum assured. 

In the present case, admittedly, the respondent insurance company did not accept the proposal and issue the policy.  We agree with the view taken by the State Commission.  This Commission, in a number of judgements, has taken the same view.  In Manoj Balmukund Aggarwal vs. LIC of India – Revision Petition No.1170/2006 decided on 29.10.2009, this Commission, relying upon para 13 and 14 of the judgement in Raja Vasireddy Komalavalli Kamba (supra) held that till the issuance of the policy, no binding contract comes into existence between the parties and the insurance company is not liable to pay the sum assured.  The judgement passed by the State Commission is concluded against the petitioner by the judgement of the Supreme Court of India.  Dismissed.