Forum denies death claim for suppressing material information

A consumer forum here has dismissed a woman's plea, seeking claim from an insurance company for her husband's death, noting that while taking the policy the man had hidden the fact that he was suffering from cancer and "suppressing material information is act of bad faith".
New Delhi Consumer Disputes Redressal Forum, presided by C K Chaturvedi, dismissed the plea filed by Delhi resident Neeru Khosla, seeking death claim for her husband from Life Insurance Corporation (LIC) of India.
"The contract of insurance is based on utmost good faith and its violation by the insured by suppressing material information is act of bad faith.

"In our considered view, Opposite Party (LIC) has been able to discharge its burden to prove suppression of facts. In these circumstances the OP cannot be faulted for repudiating the death claim. The complaint is dismissed," the bench, also comprising members S R Chaudhary and Ritu Garodia, said.
Khosla had told the forum that her husband had taken an LIC policy, effective from February 28, 2009 to February 28, 2024 for a sum of Rs 10 lakh by remitting premium.
She said that her husband suddenly died on June 10, 2009 due to cardiac arrest, adding that earlier in 2008, he had suffered short illness due to breathing problems and was admitted in a hospital here.

After the death, Khosla submitted all required documents for claim, however, LIC repudiated the claim, she said.

Aggrieved by this, she filed the complaint with the forum.
LIC, however, submitted before the forum that the man had suppressed the material information about his illness.
It said that according to the discharge summary of the hospital, where the man was admitted in 2008, it was mentioned that he was there for second cycle of chemotherapy, and again in 2009, for completion of radiotherapy and chemotherapy.
However, while filling the proposal form, the deceased had hidden this fact, the LIC said.