Not disclosing about earlier treatment, medical leave no reason to deny life cover claim: Madras HC
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The Madras High Court recently observed that merely suppressing the fact of taking treatment or obtaining medical leave could not be grounds for rejecting the entire life insurance claim.
Justice GK Ilanthiraiyan observed while ordering in favour of a woman whose husband died of a sudden cardiac arrest. The Life Insurance Corporation (LIC) rejected her claim, citing that the insurer had not disclosed his previous ailment or medical leave to treat the same. Rejecting this argument, the court directed LIC to disburse the policy amount with 6 per cent interest.
The petitioner, Ezhilarasi, had moved the court after LIC rejected her claim under the life insurance policy her husband took for Rs 10 lakh. She was the declared nominee.
In 2020, while working as principal-in-charge at the Government Arts and Science College, Manimedu, he suffered chest pain. Though he was immediately taken to the hospital, he died without taking any treatment. After this, when Ezhilarasi made a claim under the policy.
The LIC told the court that while taking the policy, the petitioner's husband had suppressed the fact that he had previously suffered chest pain and cardiac arrest. The man had also availed of leave on medical grounds on various occasions, which he had suppressed. These were cited as reasons for rejecting the claim, reported Live Law.
The court noted that while it was true that the petitioner's husband had taken medical leave, he had not undergone any surgery or treatment post-2016.
The court further noted that while filling out the application forms, the insured was only to answer yes or no, which was also filled out by the agent in most cases. In the present case, the court also noted that the petitioner's husband had not approached LIC for policy but was canvassed by the agent, who filed the application form and obtained the signatures. Thus, the court opined that the insured had not suppressed the fact of medical leave or admission to the hospital.