Concealment Of A Non-Life-Threatening Condition Not Causing Death Should Not Invalidate An Insurance Claim: NCDRC

In the case titled Life Insurance Corporation Of India vs. Shubhalaxmi Shankar Shetty, presided over by Subhash Chandra, the National Consumer Disputes Redressal Commission held the insurer liable for deficient service regarding the repudiation of an insurance claim due to alleged non-disclosure of prior health conditions by the deceased policyholder. \r

Despite arguments citing previous court judgments, including the Rekhaben case, the Commission emphasized that the insurer couldn't introduce new grounds for repudiation beyond the initially stated reasons. It underscored that the death occurred within two years of policy commencement due to lung cancer complications, rendering non-disclosure of non-life-threatening conditions immaterial to the claim. \r

Upholding the State Commission's decision, the Commission ordered the insurer to pay the sum assured along with interest and litigation costs to the complainant.