LIC Slammed for Sending Premium Reminder to Deceased Policyholder; NCDRC Upholds ₹5 Lakh Payout

The NCDRC upheld a ₹5 lakh compensation and ₹25,000 cost against LIC for denying a death claim despite issuing a premium reminder to the deceased.

Rajendra Prasad Tripathi had paid the premium via cheque, which was processed after his death.

LIC claimed the policy had lapsed. The Commission ruled that by accepting the cheque, LIC condoned the delay. It also criticised LIC for sending a premium reminder three months after Tripathi’s death, calling it insensitive.

The NCDRC directed action against erring officials and warned that such conduct damages public trust.