A long-drawn battle finally culminated in victory for a husband who fought against the Life Insurance Corporation of India (LIC) and emerged successful in his pursuit for justice. After a five-year struggle, the National Consumer Disputes Redressal Commission (NCDRC) ordered LIC to disburse Rs 1.57 crore to the husband of a deceased policyholder.
This significant decision stems from the tragic demise of the policyholder due to Breast Cancer in April 2017 and LIC’s subsequent rejection of the insurance claim in March 2018.
Timeline Unraveled
The events leading to this landmark decision paint a vivid picture of the journey undertaken by the aggrieved husband seeking rightful compensation. The deceased lady had submitted her proposal form to LIC on February 6, 2016, initiating the process that would ultimately determine the fate of her insurance claim.
Following thorough medical examinations, LIC approved the policy on March 29, 2016, coinciding with her admission to the hospital for medical procedures. Despite the diligent renewal of the policy on March 30, 2017, tragedy struck with her demise on April 28, 2017, succumbing to the ravages of Breast Cancer.
LIC’s Grounds
The crux of LIC’s denial of the health insurance claim rested on the allegation that the policyholder failed to disclose her battle with breast cancer during the inception and subsequent renewal of the policy.
LIC contended that the absence of such crucial information during the proposal stage undermined the integrity of the policy. However, the husband, undeterred by LIC’s rejection, took his grievance to NCDRC, seeking justice for what he perceived as a wrongful denial of his rightful claim.
Legal Battle
During the legal proceedings, both parties presented compelling arguments to substantiate their claims. LIC emphasized the importance of full disclosure of medical conditions during the proposal stage, highlighting the contractual obligations inherent in the insurance agreement.
Conversely, the complainant argued that no evidence suggested the presence of adverse health conditions warranting disclosure at the time of policy initiation.
NCDRC’s Verdict
Following meticulous examination of evidence and legal arguments, NCDRC delivered a decisive verdict in favor of the policyholder. The commission deemed LIC’s actions as a clear deficiency in service, thereby mandating compensation for the aggrieved party.
The awarded compensation comprises the insured amount of Rs 1 crore along with accrued interest, additional compensation for mental anguish and harassment, and litigation costs.
Conclusion
The resolution of this protracted legal battle underscores the importance of transparency and accountability in insurance agreements. The NCDRC’s verdict serves as a beacon of hope for policyholders grappling with similar challenges, reaffirming their rights to fair and just treatment in the face of adversity.
