LIC POLICY CLAIM: The country’s largest insurance company, LIC, is giving many great policies to secure the future of the people. LIC is the number one policy scheme in the country. Many people have taken the policy on this. People have zero percent risk in investment in LIC. But let us tell you that if you are going to take a policy, then you should keep some such things in mind, a mistake made by you can cause you a big loss.
For information, if you are taking an LIC policy and are hiding any disease, then it can become a big problem for you in the future. Actually, recently, a case has come to light from Haryana, in which, after the death of the policyholder, the company refused to give the claim to his wife. After this, the matter went to the Supreme Court. Let’s know about it in detail.
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Know what is the whole matter?
According to the information, Mahipal Singh, a resident of Jhajjar district of Haryana, had bought LIC’s Jeevan Arogya Health Policy on 28 March 2013. But in the application form, he declared himself as drug-free and said that he does not consume alcohol or tobacco. But a year after taking the policy, his health deteriorated and he died of cardiac arrest on 1 June 2014. During his hospitalization, he underwent a long treatment, during which it was found that he had complaints of stomach pain and vomiting.
Why was the claim rejected?
After Mahipal Singh’s death, his wife Sunita Singh filed an insurance claim, but LIC refused to give the claim. The company said that Mahipal Singh had been consuming excessive alcohol for a long time, due to which his liver and kidneys were damaged, and ultimately, this became the reason for his death. According to LIC, he had hidden the fact of drinking alcohol while taking the insurance, which is a violation of the policy terms. Case against LIC
Let us tell you that Mahipal Singh’s wife, Sunita Singh, filed a case against this decision of LIC in the District Consumer Forum, where the court ruled in her favor and ordered that
she pay the claim, interest, and compensation of Rs 5,21,650. LIC challenged the court’s decision in the State and National Consumer Commission, but LIC was defeated. The commission admitted that the Jeevan Arogya Policy is a cash benefit scheme, so the claim should be given.
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Supreme Court reversed the decision
LIC finally took the matter to the Supreme Court. In March 2025, the Supreme Court bench ruled in favor of LIC. Justice Vikram Nath and Justice Sandeep Mehta said in their decision that the fact that has been hidden has become the reason for death. Mahipal Singh’s addiction to alcohol became the cause of his death. If you are going to take out insurance, then it is important to give information about your addiction habits, as this helps the insurance company to evaluate the risk. Along with this, whether the policy is a cash benefit or any other, if the illness is caused due to alcohol, then the claim is not made.
Do not make these mistakes while taking out insurance
The Supreme Court clearly said that if any important information, such as chronic illness, addiction, or other problem, is deliberately hidden at the time of taking insurance and it later becomes the cause of death or illness, then in such a case the insurance company can refuse to give the claim.