Son died, LIC denied Rs 5 lakh insurance; Commission orders payout with interest
A consumer commission in India has ordered the Life Insurance Corporation (LIC) to pay a Rs 5 lakh claim to a father after the insurer denied it based on alleged non-disclosure of a pre-existing heart condition. The commission ruled in favor of the nominee, emphasizing that the insurer's grounds for repudiation were insufficient.
Why it matters
This case highlights consumer rights in insurance disputes and the burden of proof required for insurers to deny claims.
Your child takes life insurance, and after his death the insurer denies the claim on the basis that your son hid a pre-existing condition. What happens then?In one such case, the District Consumer Disputes Redressal Commission, Sri Muktsar Sahib, has directed the Life Insurance Corporation of India (LIC) to pay Rs 5 lakh to the nominee of the deceased policyholder.What the case is aboutThe father and nominee of the deceased son, approached the consumer commission after LIC refused to honour a life insurance claim following his son's death.The son had obtained an LIC policy in April 2022. The policy carried a maturity date of 2043 and provided a sum insured of Rs 5 lakh. He was paying a monthly premium of Rs 2,290 plus GST.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in