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LIC fined Rs1 lakh for denying claim arbitrarily

The New Delhi District Consumer Disputes Redressal Forum observed that LIC had “misdirected itself” by not showing any evidence that the deceased was suffering from asthma prior to availing the policy and had not “applied its mind” while denying his claim

Life Insurance Corporation of India (LIC) has been directed by a Delhi based consumer forum to pay Rs1 lakh to the husband of a policyholder for ‘arbitrarily’ rejecting his claim for the assured amount on his wife’s death.

 

The New Delhi District Consumer Disputes Redressal Forum observed that LIC had “misdirected itself” by not showing any evidence that the deceased was suffering from asthma prior to availing the policy and had not “applied its mind” while denying his claim. LIC had denied the claim saying the woman was an asthma patient and had not disclosed her illness while taking the policy.

 

It had relied on a discharge summary of 2004 to reject the claim.

 

“We have considered the material on record and submission made. It is patent that the opposite party (LIC) has misdirected itself. It has not brought any evidence of deceased suffering from asthma before taking of policy in 2003 or any record of taking treatment.

 

“The discharge summary of 2004 is of no use. It shows trouble for 4-5 days in 2004 and not before taking policy in 2003. Opposite party has not applied its mind. We hold it guilty of deficiency in service by arbitrarily repudiating the claim,” a bench presided by CK Chaturvedi said.

 

It directed LIC to pay the sum insured of Rs50,000 along with “punitive damages” of Rs50,000 to Delhi resident Dev Raj whose wife had died in December 2005. The forum also directed LIC to obtain half of the damages from salary of the officer concerned “who gave no attention to the appeal and agreed for repudiating the claim”.

 

Raj, in his complaint, had said that his wife had obtained the policy for Rs50,000 from LIC in 2003 and under it she was covered till 2005, but the insurance firm had rejected his claim on the ground that she was an asthma patient.

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COMMENTS

Ubaldo C DSouza

4 years ago

The personnel of the insurance sector generally, and the public-sector insurance companies specifically, are mentally conditioned to deny claims as a knee-jerk reaction. In my case they denied I ever had the cause under a Varishta policy while the same branch processed and paid for treatment of the same cause under a Mediclaim policy. Studying a claim is far from their training and competence.

S BHASKARA NARAYANA

4 years ago

20 years back, when I revealed frankly my health history, as against the wish of the agent, who used to tick everything positively, I was denied issue of policy by the LIC and also SBI Life.

VVIP Chopper deal: CBI issues lookout notice for IAF chief, others

Air Chief Marshal (retd) SP Tyagi last Wednesday became the first IAF chief to be booked by the CBI—along with 12 others—for alleged cheating, corruption and criminal conspiracy in the deal and searches were carried out at 14 locations, including his residence


The Central Bureau of Investigation (CBI) has issued lookout notice for the former chief of the Air Force, SP Tyagi, his three cousins and five other Indians who have been named in its FIR (first information report) on alleged kickbacks received by them from AgustaWestland in the Rs3,600-crore VVIP chopper deal.

 

Sources in the CBI said the notice was issued at airports to prevent them from leaving the country.

 

Air Chief Marshal (retd) SP Tyagi last Wednesday became the first IAF chief to be booked by the CBI—along with 12 others—for alleged cheating, corruption and criminal conspiracy in the deal and searches were carried out at 14 locations, including his residence.

 

The former IAF chief, his cousins—Sanjeev alias Julie, Rajeev alias Docsa and Sandeep and European middlemen Carlo Gerosa, Christian Michel and Guido Haschke were among the 13 individuals named in the FIR as accused.

 

The CBI alleged that during his tenure as Air Chief Marshal, the IAF agreed “to reduce the (mandatory) service ceiling for VVIP helicopters from 6,000 m to 4,500 m”, a source in the CBI said.

 

It alleged that reduction of service ceiling—maximum height at which a helicopter can perform normally—allowed the AgustaWestland to come into the fray as, otherwise, its helicopters were not even qualified for submission of bids. Two new names, which were not part of the CBI’s preliminary inquiry, have also been included in the FIR —Satish Bagrodia, brother of former Union minister Santosh Bagrodia, and IDS Infotech CMD Pratap Aggarwal, it said.

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COMMENTS

LoneRanger

4 years ago

Can we get our facts straight now that the initial heat of this case is behind us? Firstly - CBI is in record saying that they haven't issued LONs on the former chief - they only request that he informs them before leaving the country. Secondly- as revealed by NDTV, the PMO, NSA, SPG and MoD were responsible for the changes made and not the air force & thus air chief. Let's stop maligning the name of a decorated soldier who has fought two wars for the nation over 44 so we can sleep safe at night on the word of an absconding Italian middle man. Let's have an informed debate on the case and not allow the government to get away with merely framing a good man when people above him get away without any responsibility. Stop this character assassination please. Other nations treat their soldiers with dignity - ours deserve nothing less. Also - innocent until proven guilty is rule of law. Otherwise we are just living by jungle law.

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