₹1 Crore Claim Rejected: Wife Fought & Won

An insurer rejected a ₹1 crore accidental death claim claiming the policyholder lied about income. The consumer court ruled: insurers must prove deliberate fraud with hard evidence, not just suspicion. The wife won the full claim.

Here's what happened: An insurer denied a ₹1 crore accidental death claim alleging the deceased had inflated his income on the proposal form.. The consumer commission found the insurer provided no documentary proof of deliberate misrepresentation — only suspicion.. The court ordered the full ₹1 crore payout, ruling that repudiation requires concrete evidence of intentional fraud that influenced policy issuance..

What you should do: Check your existing insurance proposals — ensure income details match your ITR or salary slips to remove any future dispute ground.. If an insurer rejects your claim citing 'misrepresentation', file a complaint at your district consumer commission within 2 years of rejection.. Request a written repudiation letter from the insurer listing specific evidence — they are legally required to provide it, and vague letters are weak in court..

Under IRDAI guidelines, the insurer bears the full burden of proving fraud — not you. A rejection letter with no supporting documents is almost always successfully challenged at the consumer forum.