Lakshmi’s husband has taken a loan of Rs 71 lakh from a private bank in Nungambakkam, Chennai. He has been insured with ICICI Bank for that amount and paid proper premium. Meanwhile, he died of a heart attack in May 2021. Following this, Lakshmi has applied to a private bank for the insurance amount.
However, the bank management rejected his claim on the grounds that the cause of death was not given, post-mortem was not done and heart attack was not covered under the insurance. The case filed by Lakshmi against this came up for hearing in the Madras High Court today before Justice Ilanthirayan.
The lawyer who appeared on Lakshmi’s side at that time said, “Due to the death of her husband during the Corona period, the post-mortem was not done. The medical certificate issued by Tiruvekadu Municipality states that he died of heart attack,” he argued.
At the same time, the bank management said, “Even though the claim was rejected, the Insurance Appellate Board was not approached. Instead he has filed a case in the High Court. Therefore, this case is not fit for trial,” it said.
However, the judge refused to accept the argument of the bank management and said, “Heart attack is also included in the insurance. “The bank cannot say that the insurance amount cannot be paid when the premium amount has been duly paid after the insurance has been taken,” he said. Also, the judge quashed the order refusing to pay the insurance amount and directed that the amount should be paid to the petitioner within four weeks.
Further, “Insurance companies specify conditions in a vague manner so as to avoid paying the sum insured. Individuals may not have legal knowledge of these conditions. Banks are deliberately neglecting to provide insurance coverage using this. Due to this, the concerned people have been forced to approach the court and get their rights,” the judge said in his order.
