Son died in 2013, LIC rejected 5 claims over diabetes; mother wins Rs 61.5 lakh

Life Insurance Corporation (LIC) of India has been ordered to pay Rs 60 lakh cumulatively after a woman’s claim was rejected following her son’s death. The National Consumer Disputes Redressal Commission has directed LIC to pay more than Rs 60 lakh in life insurance proceeds to a Mumbai woman after concluding that the insurer had not been justified in repudiating all five policies purchased by her son, who died of cardiac arrest in 2013.The decision ends a legal dispute that continued for more than a decade. It also establishes that an insurer cannot deny a death claim for non-disclosure of a medical condition if the policyholder himself was unaware of the disease when the policy was taken.What the LIC insurance payout dispute was about:The case dates back to June 2010, when Nitin Suresh Gambhir, who lived in Mahim, Mumbai, submitted proposals to LIC for five life insurance policies.