The National Consumer Disputes Redressal Commission (NCDRC) has recently made a significant ruling while addressing a plea filed by Chhoti Devi, who has since passed away. The plea challenged an order by the State Consumer Disputes Redressal Commission (SCDRC) that upheld the decision of insurance company Bharti AXA to deny a claim made by Devi. The claim was for a life insurance policy worth ₹25 lakh, which had been purchased by Devi’s son in December 2015. Unfortunately, her son died of a heart attack in January 2017, just over a year after the policy was bought.
Bharti AXA denied the claim, alleging that Devi’s son had concealed information about existing policies when he filled out the proposal form. However, the legal heirs of Devi argued that the form had been filled out in English by the insurance company’s agent, and the relevant column about existing policies had been left blank. Furthermore, they pointed out that Bharti AXA had itself issued three other policies to Devi’s son, which meant that the company was already aware of these existing policies.
The NCDRC considered these arguments and ultimately rendered its findings. The commission’s decision is significant, as it sheds light on the responsibilities of insurance companies and the importance of transparency in the sale of insurance policies. The ruling also highlights the need for insurance companies to ensure that their agents are filling out proposal forms accurately and completely, especially when it comes to critical information about existing policies. By doing so, the commission aims to protect the rights of consumers and prevent unfair business practices in the insurance industry. The decision serves as a reminder to insurance companies to prioritize transparency and fairness in their dealings with policyholders.