Mumbai mother wins over Rs 60 lakh from LIC after decade-long claim battle
The National Consumer Disputes Redressal Commission ordered Life Insurance Corporation to pay more than Rs 60 lakh to a Mumbai woman whose son’s death-benefit claims were previously rejected.
Nitin Suresh Gambhir purchased five life-insurance policies from LIC in 2010, paying the first premium on 7 September according to deposit receipts. He was hospitalized later that month, during which records noted a two-month history of diabetes, but the insurer argued the condition should have been disclosed on the proposal form. After Nitin’s death in June 2013, LIC rejected all claims, citing non-disclosure.
The Maharashtra State Consumer Disputes Redressal Commission allowed three policies but upheld rejection of two, prompting appeals to the National Consumer Disputes Redressal Commission. The national bench, led by Dr Inderjit Singh and Shashi Nandkeolyar, concluded that LIC had not shown Nitin was aware of diabetes before the proposal and that the premium had been received before his hospitalization. Consequently, LIC must pay the combined sum assured of more than Rs 60 lakh and interest at 9 % per annum from July 2014.
Why it matters
The ruling clarifies insurers' obligations on disclosure when policyholders are unaware of medical conditions.
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