Can't reject claims due to discrepancies in proposal

The Commission didn't agree with LIC's argument that Singh had misrepresented facts and blamed the insurer for not doing proper scrutiny of the proposal forms

Harbir Singh had taken 21 life insurance policies from an Life Insurance Corporation (LIC) agent. The sum insured under these policies ranged from Rs 1 lakh to Rs 7 lakh. Singh was murdered on September 28, 2015. His mother, Rani Devi, who was the nominee under all the policies, lodged claims. When the claims were scrutinised, LIC found that in 20 proposal forms, Singh had declared that he was an employee while in one proposal form he had claimed to be an estate agent and businessman assessed for taxation.

Considering the discrepancies in the statements regarding the source of his income