The Economic Times

Life insurer rejected Rs 70 lakh death claim, but consumer commission ordered it to refund Rs 7 lakh premium despite a lapsed policy; here's why

A life insurer denied a seventy lakh death claim after a policy lapsed. The policyholder had paid seven lakh as the first year premium. The consumer commission ordered the insurer to refund this initial premium payment. This decision prevented unjust enrichment by the insurance company. Policyholders must pay premiums on time to maintain active life cover.