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LIC Reprimanded: Court Orders Payout After Death Claim Rejection Over Pre-existing Illness
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News18•30-09-2026, 10:43
LIC Reprimanded: Court Orders Payout After Death Claim Rejection Over Pre-existing Illness
- •Punjab Consumer Commission ordered LIC to pay Rs 5 lakh to the father of a policyholder who died at 30.
- •LIC had rejected the death claim, citing the deceased had concealed a heart condition.
- •The policyholder, Sukhdev Singh, died of a heart attack in August 2023, having taken the policy in April 2022.
- •The court ruled that the alleged heart procedure in 2008, 14 years prior, was not connected to his death.
- •LIC was ordered to pay Rs 5 lakh compensation and Rs 10,000 litigation costs for deficiency in service.
Key Questions Answered
The Punjab Consumer Commission directed the Life Insurance Corporation of India (LIC) to pay 5 lakh rupees to the father of the policyholder, along with 10,000 rupees as litigation costs, after ruling that the death claim was wrongly rejected.
LIC rejected the claim in January 2024 by claiming that the deceased had concealed a pre-existing heart condition, specifically an alleged ASD/VSD closure procedure performed in 2008 when he was a minor.
Sukhdev Singh purchased the LIC policy in April 2022 and tragically passed away from a heart attack on August 4, 2023, which was about one year and four months later.
