FIR is not required for processing life insurance policy - HC of Jammu & Kashmir and Ladakh

Case: Life Insurance Corporation of India & Anr. V/s Hamida Bano & Anr.

Recently, the High Court of Jammu & Kashmir and Ladakh held that registering a first information report (FIR) for the death of an insured due to an accident is not required to process the case under the life insurance policy, especially when other evidence is available to prove that the insured died in an accident.

As a result, the appeal filed by Life Insurance Corporation of India (LIC) against the order of the J&K State Consumer Grievance Redressal Commission, Srinagar, was dismissed by a bench of Justices Sanjeev Kumar and Moksha Khajuria Kazmi. As a result of the Commission's decision to allow the respondents' complaint, the Commission awarded the respondents Rs 6 lakh and 9% interest, as well as Rs 25,000.

LIC filed the appeal against the consumer forum's order on the ground that the claim submitted by the respondents was without a copy of FIR, if any, registered in the matter.

The deceased insured-deceased had taken out a life insurance policy with a sum assured of Rs 3 lakh. A clause of 'double accident benefit' cover was included in the policy issued by LIC on March 28, 2006, which stipulated that if the insured died in an accident during the policy period, the insurer would be liable to pay twice as much as the amount insured.

A fatal head injury caused by a fall occurred during the validity of the insurance policy. He died on his way to the hospital.

If their father died accidentally, the respondents informed the LIC. They provided medical certificates issued by the medical officer, a copy of the death certificate issued by the Kupwara police station, as well as one published by the patwari at the patwar halqa.

The LIC, however, denied the claim submitted by the respondents for payment of double the sum assured, i.e. Rs. 6 lahks, on the ground that the claim submitted by the respondents was without a copy of the FIR.

In such circumstances, the High Court held, the FIR may not be required if the insured died due to injuries sustained from a fall.

Further, the Court dismissed the argument of the counsel appearing for LIC that the insured failed to correctly disclose his age and submitted a false date of birth certificate at the time of insurance.

Therefore, the HC dismissed the LIC's appeal.