Aegon Life Insurance's Challenge Denied by NCDRC, Policyholder's Victory Holds Strong

 

NCDRC Judgment: Aegon Life Insurance vs. Murti Devi

New Delhi, October 31, 2023

In a notable legal case, Aegon Life Insurance Company faced off against Murti Devi before the National Consumer Disputes Redressal Commission (NCDRC). This dispute arose from the rejection of a life insurance claim.

The appellant, Aegon Life Insurance Company, headquartered in Mumbai, Maharashtra, found itself in a legal battle with Murti Devi, a resident of Delhi. The case was presided over by Hon'ble Mr. Justice Ram Surat Ram Maurya, the Presiding Member of NCDRC.

Murti Devi had filed a claim on a life insurance policy, which her late husband, Shri Suresh Kumar, held. Unfortunately, Shri Suresh Kumar passed away due to a sudden cardiac arrest, prompting Murti Devi to seek the insurance payout. Aegon Life Insurance Company, however, denied the claim, alleging that Shri Suresh Kumar had misrepresented his age and income when applying for the policy.

The dispute led to Murti Devi filing a complaint with the State Consumer Disputes Redressal Commission, Delhi, which, on November 8, 2021, ruled in her favor. The State Commission directed Aegon Life Insurance Company to pay Rs. 5,500,000, along with interest and additional compensation for mental distress and litigation costs.

Aegon Life Insurance Company subsequently appealed this decision, but it was filed with a delay of 32 days. The NCDRC, after considering the appeal, decided to condone the delay, allowing the case to proceed.

During the appeal process, Aegon Life Insurance Company contended that their investigation revealed that Shri Suresh Kumar's age, as declared in the insurance proposal, was inaccurate. They also argued that Shri Suresh Kumar falsely claimed to be a salaried employee, and they discovered evidence of health issues related to his liver and alcohol consumption.

In response, Murti Devi's legal team presented evidence, including Shri Suresh Kumar's income tax returns, to refute the claims of misrepresentation. They argued that the repudiation of the claim was unjustified.

The NCDRC ultimately found that Aegon Life Insurance Company had failed to establish that Shri Suresh Kumar concealed material facts about his age and income. The Commission also noted discrepancies in the age determination and found that the use of the voters list as the sole basis was arbitrary. In addition, the Commission found that the appellant had not provided conclusive evidence of Shri Suresh Kumar's medical condition, and thus, the State Commission's decision was reasonable.

Consequently, the NCDRC dismissed the appeal, stating that it lacked merit, and no costs were awarded.

Case Number: First Appeal No. 222 of 2022
Date of the State Commission's Order: November 8, 2021
Appellant: Aegon Life Insurance Company Ltd.
Respondent: Murti Devi
Date of the NCDRC Judgment: October 31, 2023