New Delhi: The National Consumer Disputes Redressal Commission (NCDRC) has partly allowed a widow’s complaint against Aditya Birla Sun Life Insurance Company Limited, directing payment of ₹2 crore with interest while rejecting a second claim of the same amount.
The case involved two life insurance policies taken by the deceased in 2014 and 2015. After his death in 2017 due to septic shock, the insurer rejected both claims citing suppression of material facts.
The Commission held that non-disclosure of the deceased’s prior disability was not material, as the insurer had conducted medical tests and the cause of death was unrelated to the earlier injury.
However, it upheld rejection of the second policy due to non-disclosure of existing insurance policies, terming it a breach of the principle of utmost good faith, which is central to insurance contracts.
The order highlights that while insurers cannot repudiate claims on irrelevant grounds, policyholders are obligated to make complete and honest disclosures at the time of taking policie
