Consumer commission orders Max LIC to pay assured sum to deceased\'s wife
Hyderabad: Directing the Max Life Insurance Company Ltd to pay an insurance amount of Rs 10 lakh besides an additional Rs 10,000 as cost of litigation to a woman complainant, the State Consumer Disputes Redressal Commission has said there was no justification for a rejection of her insurance claim.
A disease that occurred 12 years prior to one taking an insurance policy does not provide any ground for rejection of the insurance claim, it ruled.
G. Vijaya, resident of Ramanthapur, filed the claim after her husband's death 10 years ago.
The deceased was G Venkateshwar Reddy, who obtained the policy bearing No. 835684051 from the Max Life Insurance for an assured sum of Rs 10 lakh.
The policy holder was hospitalised on May 3, 2012, and died on June 17, 2012. The cause of death was diagnosed as 'cerebral vascular disease, midbrain mycoses, pneumonia and seposis'.
The complainant said she had spent Rs 4.3 lakh for her husband's treatment. The insurance company rejected the claim by saying the medical disclosure as required in the proposal form was not made by the life assured. The insurance firm confirmed that the life-assured had paid two premiums of Rs 82,602 and Rs 83,024 respectively in the years 2010 and 2011 and the policy was in force as on the date of his death.
Vijaya's first complaint filed with the district consumer forum had been rejected. Then she filed an appeal before the Consumer Disputes Redressal Commission.
The commission directed the Max Life Insurance Company branch in Himayatnagar to pay the sum assured to the complainant, together with interest at 9 per cent per annum from 2012 till realisation.
