₹1cr death claim denied; family fights back & wins

A retired Central Excise officer took out a ₹1 crore life insurance policy with Tata AIA Life Insurance. After his death during the COVID-19 pandemic, his wife filed a claim for the policy's sum assured. However, the insurer rejected the claim, stating that the policyholder had not disclosed an earlier insurance proposal from ICICI Prudential Life Insurance, which had been postponed due to medical findings.

The policyholder's family challenged the insurer's decision before the District Consumer Commission, which ruled in their favor. They pointed out that Tata AIA had conducted its own medical examination and declared the deceased fit and healthy. The Commission found that the insurer had not proven the policyholder's knowledge of the earlier postponement, as required for full disclosure.

Tata AIA then appealed the decision to the State Consumer Commission, which ultimately upheld the District Commission's ruling. The insurer was ordered to pay the ₹1 crore death claim with interest, along with compensation and legal costs. The Commission noted that the insurer's failure to prove conscious and material suppression was the reason for the repudiation not being sustained.