NCDRC ruling on insurance of lifestyle diseases
Insurance companies generally find ways to reject claims but got a nice thrashing from NCDRC recently. The National Consumer Disputes Redressal Commission (NCDRC) has asked LIC India to pay Rs 5 lakh to the kin of a deceased diabetes patient and made clear that insurance claims cannot be denied on the ground of common lifestyle diseases. It also asked the Chandigarh branch of the Life Insurance Corporation (LIC) India to pay the sum along with compensation Rs 25,000 and litigation cost Rs 5,000 within 45 days to Punjab-resident Neelam Chopra.
Neelam Chopra's husband, who was suffering from diabetes, had availed a life insurance claim in 2003 from the company. While filling the proposal form, he had not mentioned about his disease. He died of a cardiac arrest 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.apex consumer commission has asked LIC India to pay Rs 5 lakh to the kin of a deceased diabetes patient and made clear that insurance claims cannot be denied on the ground of common lifestyle diseases. more
Neelam Chopra's husband, who was suffering from diabetes, had availed a life insurance claim in 2003 from the company. While filling the proposal form, he had not mentioned about his disease. He died of a cardiac arrest 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.apex consumer commission has asked LIC India to pay Rs 5 lakh to the kin of a deceased diabetes patient and made clear that insurance claims cannot be denied on the ground of common lifestyle diseases. more
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Many a companies deny travel and other type of insurance to senior citizens.Govt should make a rule that such people must not be denied insurance. more
Oct 26
The sales people of the Insurance Companies themselves ask the prospect to hide the existing illnesses. In this way the sales people walk away with their rewards leaving the Insured person in the lurch. Many Insurance Companies do not cover the existing Lifestyle diseases such as diabetes or heart ailments. In my opinion, by doing this the very purpose of Insurance is defeated. more
Oct 23
In fact the penalties should be recovered from the officer who suggests denial of insurance claims. more
Oct 20
The Insurance companies are habitual of refusing/delaying on one pretext or other. But we have no alternative. more
Oct 20
