Insurance claim cannot be denied on the ground of common lifestyle diseases: NCDRC to LIC – The Economic Times – 12th October 2018

The apex consumer commission has asked LIC India to pay Rs 5 lakh to the kin of a deceased diabetes
patient and made clear that insurance claims cannot be denied on the ground of common lifestyle
diseases.
The National Consumer Disputes Redressal Commission (NCDRC), while setting aside the Punjab state
commission’s order, asked the Chandigarh branch of the Life Insurance Corporation (LIC) India to pay
the sum along with compensation Rs 25,000 and litigation cost Rs 5,000 within 45 days to Punjabresident
Neelam Chopra.
Neelam Chopra’s husband, who was suffering from diabetes, had availed a life insurance claim in 2003
from the company. While filling the proposal form, he had not mentioned about his disease. He died of a
cardiac arrest in 2004.
After her husband’s death, when she claimed the policy, the company rejected it on the ground that the
deceased had suppressed information regarding his health at the time of effecting the policy and that the
claim has become time barred.

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