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Insurance claim cannot be denied on the ground of common lifestyle diseases: NCDRC to LIC

Press Trust of India  |  New Delhi 

The apex consumer commission has asked LIC to pay Rs 5 lakh to the kin of a patient and made clear that claims cannot be denied on the ground of

The (NCDRC), while setting aside the state commission's order, asked the Chandigarh branch of the Corporation (LIC) to pay the sum along with compensation Rs 25,000 and litigation cost Rs 5,000 within 45 days to Punjab-resident

Neelam Chopra's husband, who was suffering from diabetes, had availed a life claim in 2003 from the company. While filling the proposal form, he had not mentioned about his

He died of a in 2004.

After her husband's death, when she claimed the policy, the company rejected it on the ground that the deceased had suppressed information regarding his health at the time of effecting the policy and that the claim has become time barred.

"The deceased died on account of 'cardio respiratory arrest' which was existing for only five months prior to the date of death. Thus, clearly, this was not prevailing when the proposal form was filled. The of diabetes, though was existing for some time but was under control at the time of filling up of the proposal form. Moreover, the non-disclosure of information in respect of this of diabetes, will not totally disentitle the claimant for the claim," the commission said.

The apex commission, however, said that this ground does not give any right to the person insured to suppress information of and the person insured may suffer consequences in terms of the reduced claims.

The commission said suppression of any information relating to if it has not resulted in death or has no direct relationship to cause of death, would not "completely disentitle" the claimant for the claim.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 12 2018. 14:55 IST