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Life Insurance Corporation asked to settle disputes in time
The Consumer Forum has asked Life Insurance Corporation (LIC) to clear insurance claims on time. In a judgment on Wednesday, Justice MSK Jaiswal, Consumer Forum, Khairatabad, directed LIC to clear the insurance claims on time and fines of Rs 1,00,000 towards damages and mental agony of couple Rajaiya and Anjamma.
Hyderabad: The Consumer Forum has asked Life Insurance Corporation (LIC) to clear insurance claims on time. In a judgment on Wednesday, Justice MSK Jaiswal, Consumer Forum, Khairatabad, directed LIC to clear the insurance claims on time and fines of Rs 1,00,000 towards damages and mental agony of couple Rajaiya and Anjamma.
Justice Jaiswal also urged LIC not to delay or reject claims without any proper evidence. LIC was asked to pay a sum of Rs.8,00,000 and Rs.5,00,000 towards sum assured covered for two policies of Vamshi Krishna along with all attendant benefits together with interest @ 18% per annum from the date of death of the deceased and Rs.1,00,000 towards damages and mental agony to his parents.
Illa Vamshi Krishna obtained two life insurance policies from LIC and the he committed suicide after three years on October 9, 2009. The nominees of both the policies were his parents and both of them approached LIC to claim insurance amount, when the LIC refused to pay them, the couple approached the consumer forum and filed case against LIC.
In first policy for Rs 5,00,000 the nominee was his father Ila Rajaiah, whereas, in the second policy for Rs 8,00,000 the nominee was his mother Illa Anjamma. Ila Vamshi Krishna at first obtained a policy on Jan 28, 2006 for a sum of Rs 5,00,000 when he was doing a business as a Kirana merchant even though he was post-graduate in computer science. Subsequently Vamshi Krishna got employment as Software Engineer. In a span of 6 months, the insured Vamshi Krishna took another policy on June 24, 2006 for Rs 8,00,000.
The insured Vamshi Krishna admittedly committed suicide on Oct 9, 2009, and the couple claimed amount after 3 years. But, both these claims were repudiated by the appellants insurance presenting a reason that, while the insured obtained the first policy in January 2006, he has disclosed his avocation as "kirana business" whereas in the policy obtained in June 2006, the occupation of the life assured was shown as "Software Engineer". Another ground on which the policy was repudiated was that when he obtained another policy in June 2006 i.e., after six months, he had suppressed the factum of his obtaining the previous policy in January 2006.
At the time of obtaining first policy, the policy holder was doing kirana business and subsequently joined Cpasscodes Software Company as HR Manager on April 17, 2006 and after joining the job, instant policy was obtained on June 24, 2006 through another agent.
Mere non-mentioning of obtaining prior policy is not fatal to the case. As a matter of fact, deceased policy holder died after three years of obtaining policy, hence, LIC was asked to pay a sum of Rs 8,00,000 and Rs.5,00,000 towards sum assured covered by above two policies along with all attendant benefits together with interest @ 18% per annum from the date of death of the deceased and Rs 1,00,000/- towards damages and mental agony, together with costs to each of the complainant.
LIC failed to consider the fact that the claim was made after lapse of two years from the date of death of life assured, it also failed to consider the factum of non-disclosure of material facts.
