This complaint against LIC made me wonder-whats with insurers and their constant whining? If they don’t want to settle claims, they may as well get into some other business. Why the tamasha?
A complaint against LIC was filed when LIC, as it is wont, dismissed the claim of a widow post the death of her husband on the grounds of pre-existing ailments. The deceased husband had regularly paid his monthly installments till his death. The claim was rejected, deceased’s discipline notwithstanding.
New Delhi District Consumer Forum where the complaint against LIC was filed, however, did not let go of the insurer lightly, stating that the denial was arbitrary and deliberate. The act of the insurer was unlawful and violation of contract law. The forum ordered LIC to pay a hefty sum, to the tune of 6.5L to the widow including the claim amount (5L) and compensation (1.5l). And this is not all. The 1.5L compensation to be paid by the insurer was to include Rs. 50,000 deducted from the salary of Branch Manager who issues the policy and Rs. 25000 from the salary of the Claim Manager who deliberately repudiated the policy and harassed the consumer.
Dare I say, this is vengeance in right proportion and a lesson LIC officials needed to learn!
LIC To Pay Rs. 6.5L for Deliberately Rejecting A Claim (Economic Times)