NCDRC orders ICICI Prudential to pay loan insurance amount to customer, Earlier insurance company had denied to pay amount
Namakkal: The Namakkal District Consumer Disputes Redressal Commission (NCDRC) has directed ICICI Prudential Life Insurance Company to pay ₹37 lakh to the son of a deceased policyholder, including ₹35 lakh as the insurance claim and ₹2 lakh for case expenses, along with 9% annual interest from the date of death notification.
K. Kannusamy, 58, a resident of Karaikurichi near Puduchatram, took a ₹35-lakh loan from IndusInd Bank in February 2023 to construct a house. To secure the loan, he purchased a five-year insurance policy from ICICI Prudential, paying a premium of ₹1.69 lakh. Tragically, Kannusamy passed away in March 2023 due to health complications.
After his death, his son, Kirupakar, approached the insurance company to claim the policy amount. However, the company rejected the claim, stating that the policy had been canceled because Kannusamy had not undergone a mandatory medical examination. While the company refunded the ₹1.69 lakh premium, they denied the ₹35-lakh insurance payout.
In November 2023, Kirupakar filed a legal complaint with the NCDRC. During the proceedings, the commission, led by Judge V. Ramaraj and members R. Ramola and N. Lakshmanan, found that the insurance company failed to provide any evidence, such as postal acknowledgement or other communication, proving they had informed Kannusamy about the need for a medical test.
The commission deemed the company’s reliance on an SMS and a cancellation letter insufficient and unacceptable. It ruled that the policy cancellation was unjustified and directed ICICI Prudential to pay ₹35 lakh as the insurance amount, ₹2 lakh for case expenses, and 9% interest from the date of the death notification until payment. The order must be complied with within four weeks.
