The district consumer disputes redressal forum has imposed a fine of `10,000 on the Life Insurance Corporation of India (LIC) as compensation for mental agony, besides asking LIC to settle a life insurance claim of `10 lakh with 9% interest within the next 30 days of Reena, widow of Roshan Lal, a resident of Sangrur.
Reena's counsel Sanjeev Goel said Roshan Lal had got an insurance cover from LIC's Sangrur branch on March 15, 2011, and he died on August 12. His wife Reena approached LIC for the insurance claim and submitted all the documents but the insurance company refused to pay the claim, saying Roshan was suffering from cancer and he did not disclose this in his medical report while purchasing the policy.
After repeated visits, Reena filed an application with the consumer forum where LIC failed to prove that Roshan was suffering from cancer at the time of his death. The forum then directed LIC Sangrur and Chandigarh to pay the insurance claim with fine and interest.