Failure To Settle Claim After 1 Year Of Insured's Death, Chandigarh District Commission Holds LIC Liable

The Chandigarh District Consumer Disputes Redressal Commission ordered LIC to settle a death claim within one year, emphasizing the insurer's duty to promptly process claims under the Consumer Protection Act. The case highlighted delays by LIC in responding to the claim, despite the policyholder's timely premium payments. The commission's decision underscored consumer rights in insurance disputes, emphasizing efficient claims settlement. This case serves as a precedent for ensuring timely resolution of insurance claims, enhancing consumer protection in the insurance sector.