Firm to pay widow for wrongly rejecting hubby’s insurance claim

Mumbai: The Life Insurance Corporation of India (LIC) will have to pay a compensation of Rs 1 lakh with 9% interest from March 2000 to a widow for wrongly repudiating her claim. The LIC had rejected Asha Dave's claim on the grounds that her insured husband had suppressed that he was suffering from hypertension. The Maharashtra Consumer Disputes Redressal Commission recently rejected LIC's appeal against a district forum order that had held it guilty and ordered it to pay the compensation. 

    There is no reason to believe that the deceased, Pradeep Dave, had suppressed any material fact of suffering from hypertension, observed the commission. "It cannot be said that the LIC had a valid reason to repudiate the claim. Repudiation being arbitrary, deficiency in service on the part of LIC is well established," the commission said. 
    Vile Parle resident Asha said Pradeep suffered a heart attack and died on July 2, 1997. After the insurance company rejected her claim, Asha moved the district forum in 2001. The forum ruled in Asha's favour and the LIC filed an appeal in the state commission in 2003. 
    The LIC claimed that Pradeep's certificate of treatment/consultation signed by his doctor revealed that he suffered from hypertension. 
    Asha said Pradeep was not suffering from hypertension when the LIC recorded details for his personal health statement in 1997. A mediclaim attendant's certificate issued after Pradeep's death to Asha by the same doctor who had signed his certificate of treatment/consultation stated that he did not suffer from hypertension. "This declaration assumes more weightage," the commission said. "The certificate of treatment/consultation cannot be believed." 
    THE CASE 
Sept 2, 1997 | Pradeep Dave's insurance policy is revived 
July 2, 1999 | Dave dies of a heart attack 
March 31, 2000 | LIC rejects the claim, saying he had suppressed the fact that he suffered from hypertension 
2001 | Pradeep's wife Asha files a complaint in the district forum 
April 21, 2003 | The forum orders LIC to pay Asha a compensation of Rs 1 lakh with 9% interest from March 2000 
2003 | LIC files an appeal 
July 31, 2013 | The state consumer commission dismisses the appeal