LIC told to pay Rs 15.5 lakh to kin of policyholder in Hyderabad

HYDERABAD: A district consumer forum here on Sunday directed Life Insurance Corporation of India (LIC) to pay Rs 15.5 lakh to the complainant who filed a case on behalf of his minor granddaughters for repudiating their claims citing non-disclosure of information.
K Ramulu, the complainant, who is the grandfather and legal guardian of his two minor granddaughters, submitted that his son obtained two insurance policies for a sum of Rs 5 lakh insurance coverage under Jeevan Anand and Rs 10 lakh insurance coverage under New Bima Gold.
Post his demise, Ramulu said that they submitted insurance claim on July 6, 2012, but the same was repudiated stating ‘the deceased had withheld correct information regarding his health and failed to disclose one of his previous policies while taking the current policy.’
While denying the allegations, LIC contended that the complainant’s claims are rightly repudiated on the grounds of non-disclosure of previous policy and also for suppressing material facts in the proposal form.
The bench noticed that the complainant’s deceased son has declared six of his policies and missed out on declaring only one of his previous policies. On suppression of chronic liver disease in the proposal form, the bench noticed that as per the discharge summary dated June 13, 2012, the insured was suffering from chronic disease for the past six months, whereas the policy was taken on July 27, 2011. “There is nothing on record showing that the complainant deliberately suppressed facts,” the bench said, and directed LIC to pay insurance amount along with 9% interest. Apart from compensation, Rs 5,000 was awarded towards the cost of the complaint.