Insurer must pay claim in auto-cover period

Since the insured had died on January 12, 2015, well within the auto-cover period, the National Commission held the claim to be payable

Ramprit Paswan purchased Super Cash Gain Insurance Policy from Bajaj Allianz Life Insurance. The policy was for the period October 13, 2012, to October 12, 2028, with a sum assured of Rs 4 lakh.  The annual premium was Rs 46,176. His son Ugan Paswan was the nominee.

After Ramprit expired on January 22, 2015, due to cardiac arrest, his son lodged a claim. The insurer repudiated the claim on March 31, 2015, on the ground that the policy had lapsed due to non-payment of premium.

Ugan filed a complaint before the District Forum. He stated that his father had paid the premium