Consumer forum directs LIC to pay Rs 2 lakh claim to widow of policyholder

The District Consumer Disputes Redressal Commission, South Mumbai, directed LIC to pay Rs 2 lakh claim to a widow, noting her deceased illiterate husband was unaware of policy terms. \r

Evidence showed he lacked reading and writing skills. The commission found no suppression of facts in the proposal form, given his illiteracy. LIC's repudiation, citing hypertension and smoking habits, lacked evidence of causality. \r

Hence, the commission deemed it arbitrary. LIC was ordered to pay the claim amount with nine percent interest from March 18, 2013, and compensate the widow with Rs 1 lakh for mental agony and Rs 20,000 for litigation costs.