Consumer Matters

LIC told to pay Rs 1.65 lakh 

Chandigarh, October 7
The District Consumer Disputes Redressal Forum has slapped a fine of Rs 30,000 on Life Insurance Corporation (LIC) for causing mental agony and harassment to a Sector 52 resident.
In his complaint, Amit Kumar, a resident of Kajehri village in Sector 52, had averred that his wife took a policy for a sum of Rs 1.25 lakh on October 19, 2009, valid for one year from November 3, 2009, and was required to pay Rs 510 per month as premium.
He said on the same evening, his wife fell ill and got treated at the PGI where it came to light that she was four-month pregnancy. On December 21, 2009, the Amit got her wife admitted to the PGI with the complaint of shortness of breath and irregular respiration. It was diagnosed that she was a case of swine flu which ultimately led to her death after three days along with the foetus in the womb. Thereafter, he submitted the claim form along with requisite documents, but the opposite party rejected the claim on the ground of suppression of material facts regarding her health at the time of proposing for the insurance policy.
The counsel for the LIC pleaded that the claim of the complainant had been repudiated as the insured did not act in good faith and suppressed the true and correct facts from the opposite party at the time of taking the policy. The opposite party further pleaded that the life insured became aware about her pregnancy on December 19, 2009, but she deliberately did not disclose it to the opposite party while filling up the proposal form.