LIC Policy: Consumer Forum lashes out at Life Insurance Corporation (LIC) for rejecting insurance claim. Non-disclosure of information, their claims ..
LIC Policy: Consumer Forum lashes out at Life Insurance Corporation (LIC) for rejecting insurance claim. The Hyderabad District Consumer Forum has directed LIC to pay Rs 15.5 lakh to the complainant who filed the case on behalf of his minor grandchildren for non-disclosure of information and rejection of their claims. Going into details .. Ramulu, an old man, had earlier approached the Consumer Forum against LIC for rejecting an insurance claim on behalf of his minor grandchildren. The verdict in the case was announced by the Consumer Forum on July 25. The District Consumer Forum directed LIC to pay Rs 15.5 lakh to the complainant for rejecting their claim without disclosing proper information regarding the denial of the claim.
In his complaint, Ramu alleged that his son had taken out an insurance coverage of Rs 5 lakh under Jeevan Anand and an insurance coverage policy of Rs 10 lakh under New Insurance Gold in 2012. However, after the death of his son, their grandfather Ramu filed a claim with LIC on July 6, 2012 on behalf of the minor grandchildren. The deceased failed to disclose the correct information regarding his health, as well as failed to disclose his previous policies when taking out the current policy. The insurance claim was rejected for this reason.
However, as per the complaint, the bench said that the deceased did not declare only one subject in the policy. According to the June 13,2012 discharge summary, the insured had been suffering from chronic liver disease for the past six months, but the court found that the policy was taken out on July 27,2011. The bench stated that there was nothing in the record that the complainant was deliberately suppressing the facts. The District Consumer Forum directed LIC to pay the sum insured along with 9 per cent interest. It also said that in addition to the compensation, the complainant had to pay Rs 5,000 under court costs.
