Insurance Claim Cannot Be Denied Merely Because a Column Was Left Blank: NCDRC Pulls Up Bharti Axa Life Insurance

The National Consumer Disputes Redressal Commission (NCDRC) has ruled that an insurance claim cannot be rejected just because a column in the proposal form was left blank. The order came while criticising Bharti Axa Life Insurance for refusing to honour a policy claim on such grounds.

The case, Chhoti Devi v. Bharti Axa Life Insurance Co. Ltd., was decided by a bench of Dr. Inderjit Singh and Dr. Sudhir Kumar Jain.

Background of the Case

Chhoti Devi, mother of the deceased policyholder, approached the consumer forum after Bharti Axa rejected her insurance claim. Her son had bought a policy worth ₹25 lakh in December 2015, paying an annual premium of ₹10,900. Unfortunately, he passed away due to a heart attack in January 2017.

When she filed for the claim, the insurer refused payment, alleging that the insured had not disclosed his existing policies. The column meant for this information in the proposal form had been left blank.

Arguments by Legal Heirs

Devi’s family argued that the proposal form had been digitally filled in English by the insurance agent, not by the insured himself. They further pointed out that Bharti Axa had itself issued three other policies to the deceased, so the company was already aware of them. Hence, there was no question of hiding information.

NCDRC’s Observations

The Commission held that:

• Leaving a column blank is not the same as giving a false answer.
• If the information was crucial, the insurer should have ensured the form was properly filled before issuing the policy.
• The form was typed by an agent or official, not the insured.
• There was no evidence of deliberate concealment or misrepresentation.

Final Decision

The NCDRC set aside the earlier order of the State Commission and directed Bharti Axa to:

• Pay the assured sum of ₹25 lakh to the legal heirs within 45 days.
• Add 9% annual interest from the date of filing of the claim until payment.

This ruling reinforces consumer rights, making it clear that insurers cannot deny claims based on technical lapses that are not the fault of the policyholder.