Insurance Company Can’t Deny Claim Due to Delay in Policy Issuance: Kerala High Court

The Kerala High Court set aside an award passed by the Permanent Lok Adalat which had rejected an insurance claim on the basis that the insured died within the 90-day waiting period under the policy.

The Court observed that the insurer had already accepted the premium before issuing the policy certificate and therefore could not rely on a later commencement date to deny the claim.

It held that administrative delay on the part of the insurance company cannot prejudice the insured.

Finding the Lok Adalat’s decision legally unsustainable, the Court directed the insurer to disburse the insurance benefits to the petitioner within six weeks.

[Star Health & Allied Insurance Company Ltd. v. Balakrishnan K.M. & Anr.]