The National Consumer Disputes Redressal Commission has ordered LIC to pay a Mumbai woman over Rs 60 lakh in life insurance proceeds after finding that the corporation had wrongly rejected all five policies taken out by her son, who died of a cardiac arrest in 2013.
The ruling brings to a close a legal battle that has stretched over a decade, and lays down a clear position: an insurer cannot reject a death claim on the ground of non-disclosure of a disease the policyholder had no knowledge of at the time of taking the policy.
