In a landmark consumer protection verdict, the Gujarat State Consumer Disputes Redressal Commission has directed a life insurance company to pay ₹35 lakh with interest to the family of a deceased policyholder. The order comes after the insurer rejected the claim over an alleged discrepancy in age proof — a stance the commission found unjustified.
:| Claim Amount | Interest Rate | Key Dispute |
|---|---|---|
| ₹35 lakh | 9% p.a. from claim date | Age proof validity |
The Dispute
The insurer denied the death claim on the grounds that the policyholder’s age was not conclusively proven. The company argued that the voter list submitted by the claimant was insufficient proof of age, citing discrepancies with the policy application details.
Commission’s Observation
The commission ruled that the voter list cannot be treated as a conclusive age-proof document but also noted that the insurer had failed to verify and address any such discrepancies at the time of policy issuance. Therefore, rejecting the claim posthumously was deemed unfair and a violation of the principles of natural justice.
The Order
The insurer has been directed to:
- Pay ₹35 lakh to the claimant family.
- Add 9% annual interest from the date of claim submission until the date of payment.
- Cover litigation costs as determined by the commission.
Why This Case Matters
The verdict sends a strong message to insurers about the importance of due diligence before issuing policies and the need for transparent, fair claims settlement practices. Consumer advocates say this decision could set a precedent for other disputed insurance claims involving document discrepancies.
Industry Viewpoint:
An Ahmedabad-based insurance lawyer commented:
“This case underlines that insurers cannot shirk responsibility by pointing to document flaws after a policyholder’s death, especially when they themselves accepted the documents at issuance.”
Why It Matters:
This ruling not only provides justice to the bereaved family but also reinforces consumer trust in the insurance grievance redressal system.
Know your rights as a policyholder. If you’ve faced an unfair claim rejection, tools like InsurancePlus can help you understand policies, compare insurers, and track claims effectively. Stay informed, stay protected.
