LIC loses appeal, must pay ₹2 lakh accident cover in Chandigarh

The Life Insurance Corporation of India (LIC) has lost an appeal in the Chandigarh State Consumer Disputes Redressal Commission, which ordered it to pay an additional ₹1.87 lakh in Double Accident Benefit to the heirs of a policyholder who died from an electric shock. The commission upheld a lower forum's decision, adding 9% annual interest from February 7, 2023, plus ₹20,000 in compensation. LIC had argued the policyholder, a minor when the policy was taken, needed to opt afresh for the benefit after reaching adulthood, but the commission found LIC failed to prove this condition in the policy terms. The policyholder, Mandeep Singh, died on October 12, 2020. His family received the basic sum assured after obtaining a succession certificate, but LIC rejected the additional accident claim, citing a lack of fresh option and premium payment. The commission rejected LIC's arguments, stating the insurer could not rely on internal practices and that the accidental death was undisputed.