Kerala Court Orders LIC to Compensate Family Over COVID-19 Policy Delay

The Kottayam District Consumer Disputes Redressal Commission in Kerala has directed Life Insurance Corporation (LIC) to pay Rs 50 lakh in compensation to the family of Jemon, a London-based expatriate who died of COVID-19. The commission held LIC accountable for policy issuance delays and technical lapses that denied Jemon the chance to secure alternative coverage.

In a landmark decision, the Kottayam District Consumer Disputes Redressal Commission in Kerala ruled that Life Insurance Corporation (LIC) must compensate the family of a deceased policyholder for delays in policy issuance.

The commission found that LIC violated its own guidelines by not processing the policy within the stipulated 15-day period after receiving the premium.

As a result, Jemon, a London-based expatriate, was denied the opportunity to seek alternative insurance coverage, leading to a grave service lapse. The commission ordered LIC to pay Rs 50 lakh to his family, with additional interest and penalties for delays.

(With inputs from agencies.)