Consumer Forum rejects LIC verision, directs it to pay Rs 2 lakh to deceased's family

Hyderabad: Consumer Forum has directed Life Insurance Corporation (LIC) to pay Rs two lakh with interest to the ailing mother of a deceased policyholder.

Policyholder Thangallapally Srikanth’s mother had knocked on the doors of Consumer Forum after the LIC refused to settle the claim on the pretext that her son had allegedly suppressed the facts about his heart ailment.

“In our enquiry it was found that Srikanth had taken treatment for Mitral Valve Replacement prior to the date of commencement of the policy,” said the LIC.

The LIC said had the complainant’s son shared these details, they would not have issued the insurance policy. “Hence it is purely suppression of material facts,” said an official statement of LIC.

However, according to Srikanth’s mother repudiated LIC’s claim about suppression of material facts.

“My son was hale and hearty at the time of obtaining the policy. He had no heart related diseases as claimed by the LIC,” she said.

After careful perusal of the complaint, counter and documents, the Forum said the LIC has failed to file any document in support of their contention that the policyholder had taken treatment for Mitral Valve Replacement prior to the date of commencement of the policy

“LIC ought to have made all investigations to know the health condition of the proposer before issuing the policy but not at the time of settlement,” it said

The Forum further clarified that having issued the policy, the LIC cannot escape from their liability on the ground of suppression of material facts.

It directed LIC to pay Rs 2 lakh with interest and costs.