 "Purchasing Health Insurance")
In a recent ruling, the Supreme Court overturned the National Consumer Disputes Resolution Commission’s order and upheld Life Insurance Corporation (LIC) of India’s decision to deny a claim due to non-disclosure of alcohol consumption. The insured had purchased Jeevan Arogya, a hospitalisation cash benefit policy. The court held that long-term alcohol use was a material fact, and failure to disclose it justified claim rejection after the policyholder’s death.
Insurance, say experts, is based on the principle of utmost good faith. “This verdict reinforces the importance of transparency and full disclosure in the proposal form to ensure successful claim settlement,” says
