President Dr. Arif Alvi has rejected four separate representations, filed by the State Life Insurance Corporation of Pakistan (SLICP)
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It further stated that the insurance agency must present evidence regarding the existence of alleged pre-insurance ailments and its knowledge on the part of policyholders.
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The Wafaqi Mohtasib, having investigated the cases, noted that the onus to prove that the policyholders suffered from some disease before obtaining the policy and willfully hid the facts from the insurance agency rested upon the SLICP.
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The complainants contended that the deceased persons had no pre-insurance diseases and the insurance claims had been rejected unjustifiably.
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Feeling aggrieved, the family members of policyholders approached Wafaqi Mohtasib to seek justice.
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Subsequently, the insurance policyholders expired and their families filed separate insurance claims, which were repudiated by SLICP on the ground that the deceased policyholders had pre-insurance ailments which they had concealed at the time of obtaining the policies.
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The president upheld the decision of the Wafaqi Mohtasib and ordered that SLICP must fulfill its contractual obligations and pay the policy, besides reporting compliance to the Ombudsman within 30 days.
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The corporation had refused to pay the amount assured in the life insurance policy on the flimsy ground stating that the insured persons did not deliberately disclose their pre-insurance ailments at the time of obtaining the policy.
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against the decisions of the Federal Ombudsman, ordering it to pay a collective sum of over Rs 1.6 million to families of the deceased life insurance policyholders.
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