SBI Life told to clear 3.5 lakh claim

Hyderabad: The Consumer Forum has directed SBI Life Insurance Company Private Ltd to deposit a sum of Rs 3.5 lakh under policy within one month with vested bonus with an interest of 9% per annum and a sum of Rs 5,000 towards deficiency of service and Rs 2,000 towards costs.

Govinda Venkata Ramana, a farmer of Kalvapalli Village in Miryalaguda mandal, Nalgonda district, took two lifetime insurance policies from SBI life Insurance in 2013. For a policy of Rs 1.5 lakh, he nominated his wife for the policy, and for Rs 2 lakh policy, he made his son as a nominee.

The policy holder died while the policy was in effect. As per the terms and conditions of policy, the nominees of the policies requested for the assured sum and bonus.

SBI denied the request on the ground that the deceased hid his health condition at the time he took the policy and accordingly repudiated the claim. In fact, the deceased policy holder never suffered with any health issues. He died due to heart attack.

The nominees proved their claims by submitting the health reports of the policy holder Govinda Venkata Ramana. On receipt of claim form for appointed an investigator who filed the report to the effect that the deceased policy holder was suffering from Grade-III tuberculosis, and that he hid the same in the proposal forms.

The nominees requested SBI to pay a sum of Rs 7.4 lakh (Rs 2.4 lakh + Rs 5 lakh) together with interest of 18% per annum from the date of claim filed till realization and costs of the claim.