The District Consumer Disputes Redressal Forum awarded claim of Rs five lakh along with interest at the rate of nine per cent per annum from the date of repudiation on June 28, 2007 against Life Insurance Corporation of India (LIC) to a widow Raj Rani of Sangrur. Ved Parkash Aggarwal, the husband of widow obtained Insurance policy on March 28, 2006 for Rs 5 lakh responding to proposal of agent of LIC.The LIC yesterday also slapped by Forum comprised President M D Sharma and Member H L Sharma to pay Rs 5,000 on account of mental pain, agony and harassment, besides a sum of Rs 1,000 as litigation expenses. The husband of widow died on June 21, 2006 due to septic shock within a period of two months and 20 days of taking of the LIC policy, but the LIC repudiated claim vide letter dated June 28, 2007. The LIC contended concealment of facts by deceased claiming that he was not suffering from any disease while signing the papers.
It was also alleged that he didn't took any treatment from any doctor about ailment as mentioned in proposal form. The LIC claimed that during course of investigation it came to light that the deceased was suffering at end stage of renal deceased since December 2005 besides hypertension for the last six years. It was averred that during course of investigation the LIC found that the deceased was a chronic alcoholic for last 15 years and was afflicted with diabetes mellitus for 13 years and had also a past history of jaundice in 1973.
news source : http://www.business-standard.com/
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