Insurance claim cannot be denied on basis that column on insurance form was left blank: NCDRC

The National Consumer Disputes Redressal Commission (NCDRC) ruled that leaving a column blank in an insurance proposal form does not constitute a false answer, and insurers cannot deny claims on this basis.

In the case of Chhoti Devi (now deceased), her son purchased a ₹25 lakh life insurance policy in December 2015. He passed away in January 2017 due to a heart attack.

Bharti AXA denied the claim, alleging concealment of existing policies in the proposal form. However, the NCDRC noted that the form was digitally filled out by the insurer's agent, and the insurer had prior knowledge of the existing policies.

The Commission directed Bharti AXA to pay the sum assured with 9% annual interest within 45 days.

[Choti Devi v Bharti Axa LIC & Ors.]