THE CONSUMER Forum has directed the Life Insurance Corporation (LIC) to pay insurance claim of Rs 5 lakh to a woman whose husband died after committing suicide. The forum also told LIC to pay Rs 25,000 as compensation and Rs 10,000 as litigation charges to the victim’s wife who is the nominee. Jaswinder Kaur, a resident of Sector 34, told the forum in her complaint that in 2012 her husband Gurbir Singh Riar took a life insurance policy, Jeevan Anand, for Rs 5 lakh and made her the nominee.
However, her husband committed suicide on September 26, 2015. Following this, being a nominee, Kaur sought the insurance claim but the LIC rejected it on the grounds that he concealed his disease at the time of buying the insurance policy. Then she filed a complaint in the consumer court.
LIC, in its reply, pleaded that after the death of Gurbir Singh, the claim was lodged which was looked into promptly and it was found that he was suffering from Bipolar Disorder (a mental illness) and had taken treatment from different places. But he concealed this material information while taking the policy. Hence Kaur’s claim was rightly repudiated. However, the forum held that no insurance policy could be repudiated after the expiry of two years. Hence, LIC is bound to pay the insurance claim to Kaur.