Lapsed Policy? Insurer Can Deny Your ₹70L Claim

A family lost a ₹70 lakh life insurance claim because the policy had lapsed. The consumer court still forced the insurer to return the ₹7 lakh premium paid. Here's what every policyholder must know to protect their family.

Here's what happened: A life insurer denied a ₹70 lakh death claim after the policyholder's policy lapsed due to non-payment of renewal premiums.. The consumer commission ruled the insurer must refund the ₹7 lakh first-year premium, finding it cannot keep the money while also denying all benefits.. The ruling confirms that a lapsed policy has no active death benefit — but the insurer cannot unjustly pocket paid premiums with zero obligation..

What you should do: Set up an auto-debit or standing instruction from your bank account for every life insurance premium due date — never rely on memory alone.. Check your policy's revival clause right now: most insurers allow reinstatement within 2-5 years if you pay all overdue premiums plus applicable interest and complete a medical review.. If your policy has already lapsed, contact your insurer immediately to get a revival quote — waiting longer increases the back-premium amount and may require fresh health underwriting..

Ask your insurer for an 'ECS mandate confirmation' SMS after setting up auto-debit — banks sometimes silently deactivate mandates during account upgrades, and you won't know until the premium bounces.

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