LIC criticized for denying claims | True story

The Delhi High Court criticized LIC for denying claims in case of death of the insured within two years of the commencement of the Jeevan Kishore policy.

Justice S Muralidhar in a recent judgment said, “Given the number of claims being made on yearly basis on account of the death of children under the Jeevan Kishore policy, this court holds LIC is not acting fairly or reasonably in insisting that no claim will be entertained for two years after the commencement of the policy”.

A lawyer filed a petition in court whose daughter died within 2 years (in 1996) of the commencement of the Jeevan Kishor policy. Justice Muralidhar rejected LIC’s argument that one cannot claim the benefit if the assured died prior to the deferred date and directed LIC that from now on any claims made hereafter under the Jeevan Kishore policy would not be rejected by LIC if they have been made before the deferred date provided that the other conditions are being satisfied.

Rajiv Khosla, a Delhi-based lawyer had approached the court through counsel K C Mittal after he was denied the claim on the ground that he could not claim within two years of the commencement of policy. Rajiv had taken Jeevan Kishore policy for his 11-year-old daughter for a sum of Rs One lakh in October 1994 for a yearly premium of Rs 5,533. In September 1996, his daughter died and the payment of premium was stopped thereafter.

The Court, however, made it clear that the decision is prospective and will not result in reviving claims that have already been rejected under the said ”deferred date” clause.

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Tags: LIC, LIC LIfe Insurance, LIC Policy