The Life Insurance Corporation of India (LIC) has been pulled up by the Thane District Consumer Redressal Forum for failing to verify the legitimacy of the marriage between a policy holder and his nominee at the time of issuing the policy, and subsequently denying the just settlement claim of the policy holder’s legal heirs.

Anita Nitin Kashid and her daughter had filed a claim against an LIC policy taken by Nitin Kashid for Rs. 50,000, valid for 20 years, after the latter’s death.

The LIC, however, refused to settle the claim, saying that the name of the nominee and wife of the policy holder in the policy was ‘Shakuntala’ and not ‘Anita’.

The insurance firm argued that Anita had not produced a succession certificate from a Judicial Magistrate along with her claim.

The Commission, however, found that Anita had submitted her marriage certificate, the birth certificate of her daughter and an NOC from Shakuntala, who claimed to be Nitin Kishid’s second wife. LIC, however, insisted on a succession certificate. The Commission found this, and the fact that Shakuntala’s status had not been properly verified while filling in the policy papers, deficiency of service on the part of the insurance major.

LIC has been ordered to pay Rs. 1.24 lakh – the claim amount, to Anita and her daughter, with interest at 8 per cent per annum (amounting to Rs 64,000) besides Rs 5,000 for causing her mental worries and Rs 5,000 towards legal expenses.


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