Ishrat S Banwait
Tribune News Service
Chandigarh, October 28
The District Consumer Redressal
Forum-I has directed the Life Insurance Corporation (LIC) to pay a resident of
Sector 34 Rs 5 lakh as part of an insurance claim along with Rs 35,000 as
litigation expenses and for harassment. Her husband had reportedly committed
suicide two years ago and the LIC had refused her the insurance claim of which
she was a nominee.
Jaswinder Kaur told the forum that
her deceased husband had purchased a life insurance policy called Jeevan Anand
in 2012 worth Rs 5 lakh. However, in September 2015, her husband committed
suicide. She claimed the insurance amount being a nominee but the LIC refused
it, saying that that they had concealed important facts while buying the
policy.
The LIC alleged that the deceased,
who was insured, was suffering from bipolar disorder (a mental illness) and had
taken treatment from different places for the same. This material information
had deliberately been suppressed by him while taking the policy. Hence, they
had rejected the claim.
The forum said Section 45 of the
Insurance Act, 1938, along with the material placed before the forum, showed
that no policy of insurance could be repudiated after the expiry of two years
by stating that some fact was concealed and suppressed and it was fraudulent on
the part of the policy holder. Hence, the LIC is bound to pay the insurance
claim and is found guilty of deficiency in service and unfair trade practice.
The LIC was thus directed to pay Rs
5 lakh as claim amount along with Rs 25,000 as compensation for deficiency in
service, unfair trade practice and mental agony caused to the woman. The LIC
will also pay Rs 10,000 as cost of litigation.
Can’t deny claim for
concealing facts after 2 years: Forum
The forum
said Section 45 of the Insurance Act, 1938, along with the material placed
before the forum, showed that no policy of insurance could be repudiated after
the expiry of two years by stating that some fact was concealed and suppressed
and it was fraudulent on the part of the policy holder. Hence, the LIC is bound
to pay the insurance claim and is found guilty of deficiency in service and
unfair trade practice.
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