The Delhi High Court has criticised LIC for denying claims in case of death of the insured within two years of the commencement of its Jeevan Kishore policy
“Given the number of claims being made on yearly basis on account of the death of children under the Jeevan Kishore policy, this court holds (that) LIC is not acting fairly or reasonably in insisting that no claim will be entertained for two years after the commencement of the policy,” Justice S Muralidhar of the Delhi High Court has said in a recent judgment, reports PTI.
The Court’s remarks came while allowing a petition filed by a lawyer whose daughter died in 1996 within two years of the commencement of LIC’s Jeevan Kishore policy.
Rejecting LIC’s argument that one cannot claim the benefit if the assured died prior to the deferred date, Justice Muralidhar said, “It is directed that the claims made hereafter under the Jeevan Kishore policy will not be repudiated by LIC on the ground that they have been made before the deferred date subject, of course, to other conditions being satisfied.”
The Court, however, made it clear that the decision is prospective and will not result in reviving claims that have already been rejected under the said ‘deferred date’ clause.
Rajiv Khosla, a Delhi-based lawyer had approached the Court through counsel KC Mittal after he was denied the claim on the grounds that he could not claim within two years of the commencement of policy.
Mr Mittal argued before the Court that LIC’s decision was arbitrary as his client was not told about such a condition at the time of making the policy.
According to Mr Khosla, he took a Jeevan Kishore policy for his 11-year-old daughter for a sum of Rs1 lakh in October 1994 for a yearly premium of Rs5,533.
In September 1996, his daughter died and the payment of premium was stopped thereafter.