Anantapur Consumer Forum Orders LIC to Pay Rs. 2.55 Crore in Contested Claim

Anantapur: In a decisive ruling against Life Insurance Corporation (LIC), the Anantapur Consumer Forum on Monday ordered the company to pay Rs. 2.55 crore to the wife of a deceased policyholder. The case stemmed from a contested claim on a policy allegedly covering accidental death.

Srinivasulu, a resident of Anantapur, purchased an insurance policy from the Piler branch of LIC in Annamayya district in 2018. He paid a premium of Rs. 5 lakh and designated his wife, Sridevi, as the nominee. The policy stipulated a Rs. 1 crore payout for natural death and Rs. 2 crore for accidental death.

Tragically, Srinivasulu lost his life while crossing railway tracks on February 16, 2020. While the railway police registered the case as an accident, LIC suspected foul play and withheld the full insurance amount, offering only Rs. 10 lakh to Sridevi.

Undeterred, Sridevi filed a petition with the consumer forum, seeking the full insurance amount and compensation for the emotional distress caused by LIC's denial. The forum, led by chairperson M. Srilatha and members D. Gres Meri and B. Gopinath, ruled in her favour.

In a landmark decision, the forum not only directed LIC to pay the Rs. 2 crore insurance amount but also awarded Sridevi Rs. 55,000 in compensation for the trauma she endured, along with reimbursement of expenses incurred.