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Sunday, 29 October 2017

LIC told to pay widow Rs 5-lakh insurance claim



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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