Rajkot: The District Consumer Disputes Redressal Commission, Rajkot (Additional), has directed the Life Insurance Corporation of India (LIC) to pay Rs 40 lakh to the widow of a policyholder whose death claim was rejected on the ground that he had suppressed a pre-existing hypertension condition.The commission passed the order on July 30, 2026, in consumer complaint by Chandrika Parekh.Parekh’s husband, Dipak, had taken a Jeevan Amar life insurance policy with a a sum assured of Rs 40 lakh, commencing on Oct 29, 2020, with an annual premium of Rs 46,280.Dipak tested positive for Covid-19 on April 10, 2021, and was treated at Christ Hospital and later admitted to the PDU Covid-19 Hospital in Rajkot. He died during treatment on April 16, 2021, within months of taking the policy.LIC rejected the death claim, stating that the policyholder had not disclosed hypertension while filling out the proposal form and that the policy had not completed three years. The LIC refunded Rs 46,280 towards the premium collected as a final settlement.The complainant argued that the policyholder had earlier held LIC policies in 2012 and 2015 and had undergone medical examinations before their issuance. She contended that LIC was therefore aware of his medical history.The commission observed that the medical and hospital records established that the policyholder was a known case of hypertension but did not conclusively show that the condition existed before the inception of the policy. It also noted that the records did not establish the alleged 23-year duration of hypertension.“The commission said the evidence relied upon by LIC was ambiguous and lacked clarity regarding the timeline and source of the medical history. It held that the insurer had failed to prove suppression of a material fact and that the rejection of the claim amounted to deficiency in service and an unfair trade practice.” said advocate G M Jani, who appeared on behalf of applicant.The commission also noted that the policyholder’s death due to Covid-19 during the policy period was not disputed and that LIC had not established any direct link between hypertension and the cause of death.The commission in its order noted:“ This commission sincerely believes that in difficult times where an insured person covers his-her losses under the insurance policy period, it is the duty of the insurance company that the insured must get his claimed amount on time without any delay under the terms and condition of policy.”
